Transformco has announced it will close 96 Sears and Kmart stores, leaving the chain with 182 locations. Going out of business sales will start on Dec. 2, with doors expected to shut by February 2020.
“Since purchasing substantially all the assets of Sears Holdings Corporation in February, Transformco has faced a difficult retail environment and other challenges,” the company said.
“We will continue to evaluate our Sears and Kmart footprint, consistent with our overall retail and service strategy,” it continued.
Transformco also has secured approximately $250 million in new capital. The lenders include former Sears Holdings CEO Eddie Lampert, whose ESL hedge fund bought most of Sears’ assets out of bankruptcy under a new private entity, Transformco. Sears unveiled a new store format after the purchase.
The company notes it will still “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 its Kenmore and DieHard brands.
For a list of the planned closure locations, click here.