Plank Road Kmart Among Those Closing Nationwide
The Kmart store in the Spotsylvania Crossing Shopping Center at 3655 Plank Rd. will close at the end of March 2017, Sears Holdings Corporation (NASDAQ: SHLD) announced.
The store is among 108 non-profitable Kmart stores and 42 Sears stores being closed nationwide. The company said it expects “to generate a significant amount of cash from the liquidation of the inventory and related assets of these stores.”
The 150 stores together lost the company approximately $60 million over the last 12 months.
“The decision to close stores is a difficult but necessary step as we take actions to strengthen the Company’s operations and fund its transformation,” Edward S. Lampert, chairman & CEO of Sears Holdings, said in a press release. “Many of these stores have struggled with their financial performance for years and we have kept them open to maintain local jobs and in the hope that they would turn around. But in order to meet our objective of returning to profitability, we have to make tough decisions and will continue to do so, which will give our better performing stores a chance at success,” he said.
The other Virginia stores closing are Roanoke, Norfolk, and Salem Kmart stores, and the Sears in Bristol.
The company has also entered into an agreement with Stanley Black & Decker Inc. to sell the Craftsman business for a cumulative $775 million, according to the press release.
These moves are among the company’s efforts to reverse its financial decline.