Please reload

Sears ramps up store closings again, wants to be 'asset-light'

 

Over the last two weeks Sears Holding announced plans to shutter 108 Kmart and 42 Sears stores. While these stores collectively generated about $1.2 billion in sales over the past 12 months, they generated an Adjusted EBITDA loss of approximately $60 million over that same period, according to the retailer. "The decision to close stores is a difficult but necessary step as we take actions to strengthen the company's operations and fund its transformation. Many of these stores have struggled with their financial performance for years and we have kept them open to maintain local jobs and in the hope that they would turn around. But in order to meet our objective of returning to profitability, we have to make tough decisions and will continue to do so, which will give our better performing stores a chance at success," said Edward S. Lampert, Chairman & CEO of Sears Holdings.

 

Sales have continued to be challenging during the quarter to date. Same store sales at Sears and Kmart for the first two months of the fourth quarter have declined in the range of 12-13%, Lampert said.

 

In order to help facilitate the transformation of Sears from a store-based, asset-intensive business model into a membership-focused, asset-light business model, Lampert said the retailer plans to close  an additional 150 non-profitable stores, comprised of 108 Kmart and 42 Sears stores, to stem losses; and to secure a $500 million real estate backed loan, secured by real estate properties valued at over $800 million.

 

The full list of closings is here.

 

 

 

 

 

 

 

 

Share on Facebook
Share on Twitter
Please reload

Institutional investors slash CRE capital budget by 19%: Report

Ashford REIT invests in 'purification' tech to create allergy-free guestrooms

REIT to build $110M facility to house immigrants rounded up by Trump

Working in style: The corporate campus designed by Frank Lloyd Wright

Hard Rock unveils plans to revamp Trump's failed Atlantic City casino

Food tenants increasingly crucial for shopping centers: Report

Retailer Finer Fields aims to merge bricks and clicks

The Gents Place 'lifestyle club' muscling into new markets

1/2
Please reload

COMMERCIAL REAL ESTATE NEWS & CULTURE

  • White Facebook Icon
  • White Twitter Icon
  • White Instagram Icon
More from Squarefootprint
Further reading

ABOUT USCONTACT • ADVERTISE • ARCHIVE

© 2017 SQUAREFOOTPRINT

  • White Facebook Icon
  • White Twitter Icon
  • White Instagram Icon