Kmart at 750 Indian Boundary Road is closing.
On Wednesday, Sears
Holdings Corporation--the owner of Kmart and Sears--announced that 78 Kmart
stores and 26 Sears across the country would be shuttered by the end of
On that list:
“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,” Sears
Holdings said. “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 hopes 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,” Sears Holdings added. “Eligible associates
impacted by these store closures will receive severance and will have the
opportunity to apply for open positions at area Kmart and Sears stores.”
announcement comes only eight days after Sears Holdings reported, on Dec.
27, the closure of 30 other Kmart stores and 16 Sears.
noted on Wednesday that the 150 stores in question have collectively
generated $1.2 billion in sales over the last 12 months but still incurred
an adjusted EBITDA loss--earnings before interest, tax, depreciation, and
amoritization--of $60 million in the same period. “We expect to generate a
significant amount of cash from the liquidation of the inventory and related
assets of these stores,” the company said.
Sears Holdings also
announced on Wednesday an agreement to sell its Craftsman tool business to
Stanley Black & Decker, for $525 million on closing and an additional $250
million in three years.
“We are taking
strong, decisive actions today to stabilize the company and improve our
financial flexibility in what remains a challenging retail environment,”
Sears Holdings Chair and CEO Edward Lampert said. “We are committed to
improving short-term operating performance in order to achieve our long-term
For the third
quarter of 2016, Sears Holdings reported a net loss of $748 million or $6.99
per diluted share, compared to a net loss in the year-ago period of $454
million or $4.26.
Sears Holdings said
that liquidation sales at the affected stores could begin as early as
Kmart appears to have been dodging the bullet for some time. In September,
Sears Holdings announced the closure nationwide of 64 Kmart and Sears stores
by December, following the closure of 78 other stores over the summer. More
than 200 stores were shuttered in 2015.
recently visited the Chesterton Kmart may have noticed that the electronics
department has been largely gutted, with a poor selection of oddments and
leftovers, and mattresses of all things moved into the space.
Meanwhile, a Town
of Chesterton department head told the Chesterton Tribune today that
he’s been notified by a local Kmart rep that the store will officially close
on March 26 and that the store is no longer accepting charges on the town’s
account for materials purchases.
Department records indicate that the Kmart at 750 Indian Boundary Road
opened for business in 1981, the same year that the company’s 2000th store
The Porter County
Recorder’s Office gives the address of the Kmart property’s owner as 3333
Beverly Road in Hoffman Estates, Ill., the same address listed by Sears
Holding Corporation as its corporate headquarters.
Kmart’s imminent closure will leave a vacant big box in what has been, over
the last 10 years, a more or less thriving commercial strip. But it’s not
the first big box on Indian Boundary Road to go empty. In 2001, the old
Jewel space--owned at the time by Tom Roberts--went vacant, when Jewel built
its current store across the street. Yet Jewel retained control of the old
building, renewing its lease in 2001 and then reportedly refusing to
sublease it to another grocery or pharmacy.
Then, in 2005, LZK
LLC--principals and white knights Jeff Katz and Jim Lyons--purchased the
property from Roberts and just three years later, in 2008, orchestrated its
sale to the Sisters of Saint Francis Health Services Inc. The building was
subsequently razed and the $20 million Franciscan Alliance ER department
erected in its place.
PayScale.com the average wage for Kmart employees is $8.81 per hour, with
cashiers earning the least--$7.01 to $9.46 per hour--and certified pharmacy
technicians earning the most--$9.66 to $14.33 per hour.