Sears Holding Corp. informed employees at 40 Sears and Kmart locations on Thursday that theirs stores would be closing in February. Sears Auto Stores connected to the closing locations will also shut down and liquidation sales will begin as early next week.
The 126-year-old retailer released a statement saying the move was “part of Sears’ Holdings processes to accelerate its strategic transformation and facilitate its financial restructuring.”
The closures are in addition to 142 stores the department store previously announced it would close when it filed for bankruptcy on Oct. 15. At the time, Sears had roughly 700 Sears and Kmart stores and secured $300 million in financing for the bankruptcy process. The company, burning through about $125 million in cash a month, was in the process of trying to borrow another $300 million. The plan was to trim unprofitable stores by the end of 2018 ahead of the holiday shopping season.
The latest list of store closures — 29 Sears stores and 11 Kmart stores — are spread out all over the U.S., including three stores in Puerto Rico, but largely condensed along the East Coast.
The company’s stock closed up more than 22 percent Thursday despite the news, but shares are still only priced around 30 cents a piece. At its peak, company shares were worth more than $144 each.