Daily Management Review

Sears closes one third of stores


The American company Transform Holdco, which owns retail chains Sears and Kmart, has announced that it will close 96 stores, that is, about a third of all stores in both chains. At the same time, the company said it provided a loan of $ 250 million, which will enable retail chains to continue to exist.

Phillip Pessar via flickr
Phillip Pessar via flickr
Sears and Kmart are some of the oldest retailers in the United States, both of which were created at the end of the 19th century. At one time, Sears was the largest American retailer until Walmart got ahead of it. Recently, both networks included in Sears Holdings have been going through difficult times: since 2011, the company has been operating at a loss, unable to withstand competition from online stores, and in October last year it reported bankruptcy. In February, the holding for $ 5.2 billion was bought by the American billionaire Eddie Lampert, who headed Sears for some time. Now the owner of the networks is Transform Holdco, created specifically for this and managed by Mr. Lampert's investment fund.

At the time of Mr. Lampert’s purchase, the networks, which once totaled more than 3.5 thousand stores, owned 425 stores. After last downsizing, there will only be 182. Now 51 Sears and 45 Kmart stores will be closed: they will be closed from early December, this process should be completed by February. 

source: bloomberg.com