Arrow-right Camera
The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883

Kmart to sell Sears 45 stores for $524 million

Associated Press

TROY, Mich. — Kmart Holding Corp. will sell 45 of its stores to Sears, Roebuck and Co. for $524 million, Kmart said Thursday.

The sale of as many as six more stores for up to $65.25 million remains subject to conditions that would have to be met within the next 15 days, the Troy-based company said.

Kmart had announced June 30 that it would sell up to 54 of its stores to Sears for as much as $621 million.

“The stores we are retaining from the originally announced transaction are operating profitably,” Julian C. Day, Kmart’s president and chief executive, said in a statement. “As has always been contemplated, Kmart will continue to operate those stores … We look forward to providing continued service to our customers at these locations.”

Locations of the 45 affected stores being sold to Hoffman Estates, Ill.-based Sears are to be released as transactions are finalized in the coming weeks.

Kmart will continue to operate the stores until March or April and expects that Sears will assume the properties by April 15. Kmart has said Sears has agreed to consider offering jobs to Kmart employees at the converted stores.

Kmart did not return calls for comment Thursday night.

Kmart, which emerged from bankruptcy in May 2003, has achieved a speedy financial turnaround, posting a profit in the previous two quarters and amassing $2.2 billion in cash. However, sales have continued to drop.

Shares of Kmart finished up $1.47 to close at $79.39 Thursday on the Nasdaq Stock Market. Sears rose $1.88, or 4.9 percent, to close at $39.99 on the New York Stock Exchange.