In a bid to turn its profits around, the company will close 68 Kmart and 10 Sears stores this summer.
The news comes after previous announcement that it will close 50 other stores. Results show a disappointing holiday sales season and that sales have been falling in general.
“The decision to close stores is a difficult but necessary step as we take aggressive actions to strengthen our company, fund our transformation and restore Sears Holdings to profitability,” said Sears Holdings CEO Edward Lampert in a statement.
The closing Kmart and Sears stores will hold liquidation sales starting May 12th and April 29th. All of the Sears stores and nearly all of the Kmart stores will close in late July, with two more Kmart stores to close in mid-September.
Those proceeds from those sales, along with some revenue from subleasing closed stores, are considered “important steps,” along with $1.2 billion in debt financing, aimed at restoring profitability, Sears said. Sears Holdings reported a loss of $580 million in the quarter ended January 30th, compared with a loss of $159 million in the year-ago quarter.
Sears shares rose in after-hours trading on Friday, up 6.3% to $19.15 a share, up $1.14, after having fallen 3.4% during the trading session on Thursday.