said on Thursday that it plans to close more than 60 stores that it considers unprofitable, as the retailer continues to struggle with declining sales.
Sears has closed hundreds of stores in recent years, selling off brands and divesting divisions to flood amidst rising losses and customer overruns
and other outlets
The company stated that it identified a total of 100 unprofitable businesses and left workers on Thursday in 15 Kmart and 48 Sears Shops have informed that their locations would close later this year.
Sears also reported lower revenues for the first quarter of the fiscal year and extended a series of declines that date back more than six years. The last quarterly revenue increased compared to the third quarter of 2011, when the formerly dominant retailer generated $ 9.4 billion in revenue, according to data from the US
In the quarter ended May 5, total revenue decreased 31% year-on-year to $ 2.89 billion.
Same store sales decreased 13% at Sears sites and 9.5% at Kmart stores. The retailer had a total of 894 locations by the end of the quarter, compared to 1,275 a year earlier.
Sears went from a profit of $ 245 million to a net loss of $ 424 million in the first quarter. The prior-year period included an increase of $ 741 million from asset disposals. Sears has recently earned $ 165 million in profits.
Sears is reviewing whether to discard his Kenmore device brand and other units. The steps follow the impetus of Sears Chief Executive
who has suggested that his hedge fund buys the assets if the company can not find other buyers. Mr. Lampert is the biggest investor in Sears and one of its biggest lenders. He said in an April letter to the Sears Board that his ESL Investments Inc., which owns a controlling stake in the retailer, is prepared to bid for Kenmore, the Sears Home Improvement and Parts Direct Company, as well as some real estate, including $ 1 , 2 billion debt secured by the real estate
Sears has hired consultants and said earlier this month that it initiated a formal sales process. On Tuesday, ESL announced in a further letter to the Sears Board that it had received "numerous incoming requests from potential partners" and requested permission from the board's special committee to engage with such partners to "finalize" proposals submit proposal.
Investors, suppliers and landlords have become increasingly worried about the future of the company, forcing Sears to pay cash in advance for many goods, and ESL regularly extends its corporate loans. "Sears' # 39; Bankruptcy protection was applied for and decided to liquidate.Sears had spun off most of its stake
in recent years, but retained 12% ownership.
The company's shares closed at an all-time high of $ 142.51 in April 2007 are now around $ 3. Shares fell 12% on Thursday trading, the biggest drop per day in more than a year.
Last year, Sears signed a deal selling Kenmore products on Amazon.com Inc. and expanding its reach beyond the Sears and Kmart markets. It also began selling its DieHard batteries on Amazon. In 2017, it sold its brand Craftsman
Stanley Black & Decker
the distribution of tools, lawn and garden tools to other retailers expanded
. Lampert's interest in buying Kenmore and the other companies expands a number of transactions, often on both sides. In addition to his role as Chairman and CEO of Sears, he is also Chairman and Key Investor of Seritage, which is one of Sears' largest landlords.
-Theo Francis has contributed to this article.
Write to Suzanne Kapner at Suzanne.Kapner@wsj.com and Allison Prang to email@example.com