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Yet More Store Closings for Sears

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Sears is closing more Kmart and Sears stores.

The two stores are among 22 Kmart and six Sears stores being closed nationwide this fall. The closings follow an $86 million second-quarter loss on revenue of $10.6 billion that Sears Holdings reported last month. In its earnings report, the company identified all 28 stores being closed as "underperforming." None of the other 26 stores being closed is in Minnesota.

The new closings are in addition to the closing of 13 Kmart stores and 11 Sears stores nationwide earlier this year.

However, by my count Sears has closed even more than 52 stores. Last October, it had announced it was going to close 12 stores in 2009. Later, it announced plans to close eight more stores this year. Then in February it announced 24 more closings.

Overall, that puts the full number of Sears and Kmart closings for 2009 at up to 72 stores, unless there are some overlaps between this and its earlier announcements.

The original plan, laid out in January 2008, called for cutting 13 percent of AnnTaylor staff at headquarters and closing 117 stores.

Krill said on Thursday the company now plans to close an additional 30 stores, but aims to relocate those stores' best workers to other stores. Any job losses resulting from store closures are not included in the 160, Krill said.

She reiterated the company's plan to open 14 new stores this year.

In addition, last week both Samsonite and Pacific Sunwear announced closings last week. (Thanks to Jay Rickey for the alert on that.)

Numbers below have been updated.

Bankruptcies and Liquidations:

Potential Bankruptcies & Liquidation Impact: 1,541 confirmed closures out of about 3,185 stores

Announced Closings

Total Closings: up to 1,754 U.S. stores

Potential Impact of All Announcements to Date: 3,295 closures out of up to 5,139 potentially affected U.S. stores

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Elaine Misonzhnik

Senior associate editor Elaine Misonzhnik has been writing for National Real Estate Investor since June 2006 and has covered commercial real estate for more than 12 years. She first became...
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