Kmart will shutter an additional 64 locations, which follows Sears Holdings’ decision to close 68 Kmart stores announced in the spring.
Citing several local news reports from around the country, Business Insider reported the store closures. In addition, an 8-K Securities and Exchange Commission filing from Seritage Growth Properties announced the lease termination by Sears Holdings of “17 unprofitable stores” that total 1.7 million square feet. According to the SEC filing, the aggregate annual base rent at these stores is approximately $5.8 million.
Sears Holdings will pay Seritage a termination fee equal to one year of the aggregate annual base rent, plus estimated operating expenses.
The new round of closures follows an announcement this spring that Sears Holdings would close as many as 68 Kmart stores.
In recent years, Sears Holdings has closed hundreds of Sears and Kmart locations as the company sought to reverse falling sales.
In August, the company reported second quarter revenues of $5.7 billion, down from sales of $6.2 billion in the comparable quarter the previous year. Company officials pinned the revenue decrease on a 5.2% decline in comparable store sales and a lower store count as the result of previous store closures.