78 Kmart, Sears stores, including 4 in Calif., to close this summer

78 Kmart, Sears stores, including 4 in Calif., to close this summer

Sears Holdings Corp. will close more than six dozen stores across the nation during this summer, the Hoffman Estates, Illinois-based struggling retailer announced on Thursday.

The company declared that 78 stores, including 10 Sears and 68 Kmart stores, will be closed by September. Nearly all of the stores will likely be closed in late July. But, two stores, one in Ohio and one in Michigan, will be closed in September.

Company official said the closures would generate much-needed cash through the liquidation of store inventories and via the sale and sublease of the real estate.

In a press release, the company added, “Together with the over $1.2 billion in debt financing that Sears Holdings announced it had raised earlier this month to provide capital to execute its transformation … the company believes it has taken important steps toward its primary 2016 objective to restore profitability.”

The Illinois retailer presently operates nearly 1,700 stores, and the number of stores it has decided to close accounts for 5 per cent of its overall store base.

Four of the affected Kmart stores are in California, at Lodi, Dinuba, Tulare and Wasco. The process of liquidation is expected to start as soon as May 12.