Transformco, the shell company that bought bankrupt retailer Sears Holdings Corp. earlier this year, disclosed late Thursday that the “difficult retail environment and other challenges” have led to the decision to close an additional 96 stores by Feb. 2020.
Following the closures (51 Sears and 45 Kmart stores), Transformco will operate only 182 stores, a 57% decline of its Sears and Kmart footprint from 1Q19 of 425 stores.
The latest 96 closures are in addition to the 100 stores we reported last month.
In 2014, Sears operated 2,000 Sears and Kmart stores across the country have seen significant declining sales as consumer trends evolve to more e-commerce shopping.
“Since purchasing substantially all the assets of Sears Holdings Corporation in February 2019, Transformco has faced a difficult retail environment and other challenges. We have been working hard to position Transformco for success by focusing on our competitive strengths and pruning operations that have struggled due to increased competition and other factors. To support these initiatives, our owners (along with a third-party investor) have recently provided the company approximately $250 million in new capital.
As part of this process, we have made the difficult but necessary decision to streamline our operations and close 96 Sears and Kmart stores. Going out of business sales at these stores are expected to begin on December 2.
Following these closures, Transformco will operate 182 stores. We will continue to evaluate our Sears and Kmart footprint, consistent with our overall retail and service strategy,” the statement