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Kmart Announces More Store Closures in Cost-Cutting Effort

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Kmart will close five stores across Michigan by early December, including two in the Metro Detroit area. The retailer announced its decision to close stores in Burton, Flint, Madison Heights, Port Huron and Rochester, affecting a total of 610 employees. Liquidations sales will begin as soon as Sept. 28.

The retailer, a subsidiary of Sears Holdings, also said it would close stores located in Connecticut, Indiana, Nebraska, Ohio, Tennessee and Wisconsin. All eligible employees will receive severance pay and will have the opportunity to apply for jobs at nearby Sears and Kmart locations.

Kmart spokesman Howard Riefs said in a statement, “The store closures are part of a series of actions we’re taking to reduce on-going expenses, adjust our asset base, and accelerate the transformation of our business model.”

In a filing with the U.S. Securities and Exchange Commission, Kmart said it was moving toward a less asset-intensive business model. News of potential store closures surfaced in August when chief financial officer Rob Schriesheim said the company planned on shutting unprofitable stores as leases expired or sooner.

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