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Sears to close another 103 stores

RBR Staff Writer Published 05 January 2018

Sears is planning to close down 103 more stores in the US between early March and early April this year.

Liquidation sales will start as early as 12 January 2018 at the closing stores.

Of the 103 stores, 64 will be Kmart and the remaining 39 will include Sears stores.

The company stated that the closures are a result of its continued assessment of productivity.

It will continue to close unprofitable stores, until its physical stores and digital or online retailing capabilities match the needs and preferences of its customers.

The company also stated that workers who will be affected by the closures will receive severance and can apply for open positions at area Kmart or Sears stores. But, it did not mention, the actual number of employees that will be affected.

Sears is said to have not turned to profit since 2010. It has been losing billions of dollars and closing stores for several years.

In 2013, the company’s sales had fallen by over 45% and its debt has increased to over $4bn, while it is losing $1bn annually.

The company possessed 1250 stores as of last July in the US, which had fallen from 3400 stores it had back in 2006.

As of last October, the company had 594 Sears stores and 510 Kmart stores in the US, which was 399 fewer than what Sears had in 2016.

The company has been downsizing to be financially more flexible this year. Last year, it had paid $325m on a loan which was due for this year and has also received an extension on $400m. But, the company still has $752m in due for this year.

It has also agreed to sell 138 of its properties to raise $407m contribution to its pension plans.

Image: Sears to close down more than 100 stores in the US. Photo: Courtesy of Caldorwards4/Wikipedia.org.