More Sears and Kmart sites should be closed



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Nearly a year after bankruptcy, retail giant Sears has laid off 250 employees from its headquarters and could close more Sears and Kmart stores by the end of the year.

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Sears' parent company, Transformco, filed a notice in August with the Illinois Department of Commerce and Economic Opportunity announcing plans to lay off 250 employees at its Hoffman Estates headquarters.

Also in August, Transformco announced the closure of 26 Sears and Kmart sites in nearly two dozen states by the end of October. At the time, the company refused to comment on media reports that more than 100 Sears and Kmart stores are expected to close by the end of the year. Some of the store closures have been reported on the bulletin board site, thelayoff.com.

If reports are true, there will be less than 100 Kmart locations and 200 Sears locations, according to the International Business Times.

"The fact that Sears is currently closing stores, before the important vacation period, shows that the company's business model still does not work," said Neil Saunders, general manager of GlobalData Retail at CNN Business. "This is not surprising because Sears has never really set up a credible survival plan: there has always been talk of making cuts to improve bottom line results, rather than knowing how to develop them. . "

Earlier this year, a judge authorized Transformco to purchase the remaining $ 5.4 million from Sears, according to CBS News. The founder of Transformco and former CEO of Sears, Eddie Lampert, said at the time that he planned to preserve up to 50,000 jobs and put money aside for them. severance.

Transformco reiterated these plans in a closure statement last month. "As promised, all eligible associates will be offered the same number of weeks of benefits as employees of Sears Holdings Corporation prior to filing their Chapter 11 in October 2018," the statement said.

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