Sears Holdings has been in a downward spiral for some time now. On numerous occasions, we’ve reported on the company’s downsizing efforts.
At the beginning of the year, the company closed 150 Sears and Kmart locations and spun off its Craftsman Tools line. Recently, company officials stated in an SEC filing that there was “substantial doubt” that the franchise could continue on unless it found a way to raise additional capital.
Now, the company has announced that it will be closing 50 Sears Auto Center locations and 92 underperforming pharmacy operations in certain Kmart stores. The move is meant to help the company reach its $1.25 billion cost-cutting goal, which had previously been set at $1 billion.
"Consistent with our ongoing strategy of focusing on our Best Stores, Best Categories and Best Members, we will continue to take difficult yet necessary actions. As we sharpen our focus on profitable areas of our business, we will also continue to closely evaluate the longer-term viability of stores where a clear path to return to profitability is not in sight,” said Sears Holdings CEO Edward S. Lampert.
“We are determined to take all necessary actions to improve the performance of Sears Holdings and will leverage our lease optionality to reconfigure our stores and reduce capital obligations.”
The Chicago Tribune reports that no timeline has been given for the closings, but some employees were notified on Friday that they would soon be losing their jobs.
“We obviously don’t take these decisions lightly. But in order to be a more competitive retailer and return the company to profitability, we need to look for ways to streamline the operations,” said company spokesman Chris Brathwaite, adding that the full list of store closings had not yet been released.