Kmart, Sears work out terms of store transactions

TROY, Mich. — Kmart will sell 45 stores for $524.5 million in cash to Sears, Roebuck and Co., finalizing the exact terms of a deal that was inked in June.

The original deal allowed for the sale of up to 54 stores for $621 million in cash.

The sale of up to another 6 stores remains subject to unannounced conditions that must be met within the next 15 days, stated the companies. The cash proceeds from these 6 additional stores would total up to $65.3 million.

Julian Day, president and CEO of Kmart, said, "The stores we are retaining from the originally announced transaction are operating profitably. As has always been contemplated, Kmart will continue to operate those stores for which certain conditions related to the assignment of the store leases to Sears have not been met. We look forward to providing continued service to our customers at these locations."

Kmart will continue to operate the stores that will be sold to Sears until March or April 2005. Sears has agreed to consider offering employment to any Kmart employee who desires a position at the converted stores, stated the companies. Specific locations of the stores affected will be available once the transaction is finalized in the coming weeks.

Kmart expects to receive 30 percent of the final sales proceeds from Sears by Sept. 30. The remaining 70 percent of the final sales proceeds will be received by Kmart when Sears has taken occupancy of the properties, which is expected by April 15, 2005.

Home & Textiles Today Staff | News & Commentary

 Home Textiles Today is the market-leading brand covering the home and textiles markets, offering a comprehensive package of print and online products. Home & Textiles Today provides industry news, product trends and introductions, exclusive industry research, consumer data, store operations solutions, trade show news and much more.

Featured Video

  • Live From New York: Fashion Comes Across the Pond

    Camera Icon More Videos

Subscribe to
Home & Textiles Today eDaily
Receive the news you need to know about the trends in the industry delivered right to your inbox.

CURRENT ISSUE

HTT Current issue for September 2017

See the September 2017 issue of Home & Textiles Today. In this issue, we look at the Attack of the Killer Third Tier: Monster off-pricers are climbing to the top of the food chain, plus New Products: 40 pages of new products debuting at the New York Home Fashions Market; Home Stores: TJX unveils first U.S. HomeSense store; Clicks to Bricks: Boll & Branch moves from digital to physical retailing; and much more... See details!