NEW DEAL: Kmart Holding Corp. Thursday reduced the number of stores it will sell to Sears, Roebuck under a prior agreement. The company will now sell 45 stores to Sears, nine less than it had first announced on June 30. The new acquisition cost is $524.45 million in cash, down from a previously released figure of $621 million. Kmart said six more stores could be sold to Sears if certain conditions are met in the next 15 days. The additional cash proceeds from those stores would total $65.25 million. Kmart did not disclose a reason for the decrease in stores being sold to Sears, but noted that the stores in question are operating profitably. By Sept. 30, Kmart expects to receive 30 percent of the final sales proceeds from Sears. The remaining 70 percent is expected to be received no later than April 15. Kmart plans to operate the stores it is selling to Sears until March or April.
This story first appeared in the September 3, 2004 issue of WWD. Subscribe Today.