Sears Holdings closes stores again. The company that owns Sears and Kmart has not made a profit since 2010.
Sears Holdings plans to raise another 63 bucks Close – Avoid stores as the besieged department store chain tries to stem the bleeding from its long-running sales crisis.
The company will close 15 Kmart and 48 Sears locations, the last in a flurry of relocations to restore the retailer's revenue relevance at a time when an increasing number of shoppers are bypassing the store chains to interact with online retailers. To shop big box and specialized competitors like Amazon, Walmart and Best Buy.
Sears has embarked on an almost continuous campaign of downsizing, a turnaround that has so far proved elusive. The final round of closures will take place in early September, with liquidation sales already starting on 14 June.
Sears Holdings closed about 530 challenging locations last year, and the next wave is expected to make up around 8% of the company's approximately 899 remaining branches, according to analyst Bill Dreher of Susquehanna International Group
Through the intensified online competition and strategic missteps, Sears sales have declined sharply.
"Sears continues to struggle to bring its business to the black market," said Moody's Vice President Christina Boni in a statement. "The continued efforts to increase liquidity will be necessary to finance the ongoing losses."
The company signaled that further closures would be imminent. It initially said that it would close 72 sites out of approximately 100 non-profitable businesses. However, the company had determined that "a small group of deals were pulled out of the closing list". .. as they continue to be evaluated.
The company has not said what would happen to the 28 other unprofitable locations.
Sears CEO Eddie Lampert plans to sell the Kenmore Appliance brand of distressed retailer and real estate Elizabeth Keatinge has more.
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The company said sales of stores open at least one year – an important measure for retailers – fell overall in the last quarter by 11.9%, including a decrease of 13.4% at the Sears sites and 9.5% in the Kmart markets.
Following the bleak news, Sears stock prices fell 11.37% to $ 2.85 in the afternoon session.
The retailer said that one bright spot was that apparel, footwear, and jewelry stores were growing at the Kmart and Sears locations.
Sears reports on its earnings as it still considers an offer from its largest shareholder and CEO Eddie Lampert buys the company's Kenmore device brand and other assets
Lampert said in a statement that Sears "would continue to explore options exploit the full potential of our assets for our shareholders. "
It's one of Sears "crown jewels."
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The company will also seek to partner with third parties and provide additional momentum with a new one Forms of Small Format Locations
Sears has raised investor appetite in recent months through a contract with Amazon, which provides services for tires sold online, and a credit card agreement with Citi.
Follow USA TODAY reporter Nathan Bomey on Twitter @ NathanBomey .
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