Sears And Kmart Begin Restructuring Process To Compete

The three Sears stores and five Kmart stores that will close in Puerto Rico will soon be part of a restructuring plan that will include, in total, the closure of 96 stores that will be made by TransformCo, the new owner of both chains, the corporation said.

At the end of these closures, in February 2020, Transformco will be left with just 182 establishments.

The corporation reported that it will close 51 Sears and 45 Kmart, and the sale of liquidation will begin on December 2. This as part of the most recent round of closures they have announced since both chains went bankrupt last year. In the last 15 years there are more than 3,000 Sears and Kmart stores that have closed in the United States and Puerto Rico.


"We will continue to evaluate our presence of Sears and Kmart, in accordance with our general retail strategy and service," the company said in a press release, implying that the closures could continue. He added that the company, together with an external investor, has added $ 250 million in new capital.

Since buying all of Sears Holdings Corporation's assets in February 2019, Transformco has faced a difficult retail environment and other challenges.

"We have been working hard to position Transformco for success, by focusing on our competitive strengths and cutting operations that have had problems due to increased competition and other factors," said the corporation.

TransformCo bets that with the 182 Sears and Kmart, plus the Die Hard and Kenmore brands, and with a network of 400 independent Sears dealers, who handle a small format in which they sell household goods, tools, sports and gardening items , the company can compete and obtain sponsorship from its customers.

As for the employees who will be dismissed, TransformCo reported that it will offer all eligible associates the same amount of compensation weeks that were offered to Sears Holdings Corporation employees before October 2018.