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Sears Expected To Close More Stores

A sign for the Sears department store is seen at Fair Oaks Mall in Fairfax, Virginia.

The large scale store where many people get stuff for their homes or just for their own personal use. The store's CEO announced that they will be closing stores. Sears Holdings announced this on Friday.  Sears Holdings also owns Kmart nameplates and of course, Sears.

The CEO Eddie Lampert said: "This is part of a strategy both to address losses from unprofitable stores and to reduce the square footage of other stores because many of them are simply too big for our current needs,"

Sears Holdings said that it would be closing 35 unprofitable Kmart stores. It will also close eight additional Sears store locations. The stock for Sears even fell three percent.

The unprofitable stores are supposed to be closed in October. Associates that are eligible are said to be receiving severance, they will even have the option to apply for open positions at local Kmart and Sears stores.

"We have fought hard for many years to return unprofitable stores to a competitive position and to preserve jobs," The CEO continued.

"[W]e don't make decisions to close stores lightly," he mentioned.

"more relevant and more competitive for our members and other constituents. Lampert said.

When talking about the Sears restructuring program, the updates that are concerning debt, liquidity improvements, and $1.25 Billion in cost savings.

"As I have said before, the level of support we have from our vendors is an important factor in defining the size of our business and the number of stores we can operate responsibly going forward," The CEO said.

"Despite this challenge, we have been working and fighting hard to improve our operational performance and streamline our organization," Lampert mentioned.

The company has had issues with profits and has closed several Canadian stores.

The CEO said that vendors over the past year have trimmed support. Some vendors are concerned when they hear rumors about a Sears bankruptcy filling. If the company goes bankrupt, they probably won't get any money.

Sears is reportedly opening some stores where they only sell appliances and mattresses. This will be a step in the direction of having a store where it is not as large.

By Michael Normandin

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