Transformco, which purchased substantially all of the assets of Sears Holdings Corporation in February 2019, is continuing to streamline its operations and will close an additional 96 Sears and Kmart stores.
Going out of business sales at these stores are expected to begin on December 2. The stores will close by February 2020, the company said.
The company cited a difficult retail environment and other challenges. Following these closures, Transformco will operate 182 stores. The company said it will continue to evaluate its Sears and Kmart footprint, consistent with its overall retail and service strategy.
To support these initiatives, Transformco, along with a third-party investor, have recently provided the company approximately $250 million in new capital.
The company stated, “We will endeavor to create and deliver value through a strategic combination of our better-performing retail stores and our service businesses, brands and other assets, and expect to realize a significant return on our extensive portfolio of owned and leased real estate. These assets include Innovel, which provides logistics solutions to businesses and consumers, Sears Home Services as well as Shop Your Way and financial services, and our Kenmore and DieHard brands. These businesses will also benefit from the recent acquisition by an affiliate of Transformco of Sears Hometown— a network of more than 400 independently-owned and operated, dealer-managed smaller-format stores that are known for offering customers a range of home products, including appliances, lawn & garden, tools and sporting goods.”