TransformCo plans to close an additional 100 Sears and Kmart stores before December 31, 2019. It would close stores in various locations including Illinois, Idaho, Colorado, California, Delaware, Connecticut, Florida, Indiana, Maryland, Maine, Kentucky, New Jersey, Montana, Massachusetts, Minnesota, Michigan, Ohio, North Dakota, Texas, Tennessee, Wisconsin, and Washington.
This is just weeks after announcing the closure of 26 stores in locations ranging from Texas to California to Virginia in October. The company revealed the information in a note to Asbury Park about its decision to shut down the stores in Wall, Trenton, Wayne, and Somers Point. TransformCo has encouraged the customers in New York to continue shopping at its online stores. The company would begin the liquidation efforts in mid-September 2019.
Closure of Sears Auto Centers in August
TransformCo would shut down the Sears Auto Centers by the end of the August. According to a company communicate, it strived hard over the past few months to maintain normal inventory levels and improve vendor’s relations, operations, and customer satisfaction. Despite these efforts, the company has faced several challenges, including a weak retail environment and differences in purchase agreements with Sears Holdings to bring the stores to normal levels maintaining optimum productivity. It has failed to maintain the performance under these challenging conditions.
$5 billion deal saves Sears from bankruptcy
Early 2019, Eddie Lampert, the Chief Executive Officer, secured a $5 billion deal with the help of his edge fund ESL to acquire assets of Sears. It helped Sears to come out of bankruptcy and operate 400 Sears and Kmart stores. The company renamed the assets. Lampert later vacated the CEO role and but continuing as a Chairman at TransformCo.
Inaugurates ‘Sears Home & Life Stores in May’
Sears has inaugurated three ‘Sears Home & Life’ stores in May 2019 under a new format. The new stores focus on the sale of mattresses, appliances, and connected home products.
Several Sears and Kmart stores in various locations have become profitable over the years because most of the consumers moved away from the purchase of furniture, apparel, and appliances online. However, TransformCo is still suffering from the same issue even now.