After a lackluster quarter, Sears Holding Corporation has announced plans to close as many as 120 of its North American stores.
The storied retailer owns the Sears and Kmart retail chains. In a Tuesday (Dec. 27) news release, the company said sales at Sears stores was down six percent this quarter and Kmart sales were down 4.4 percent for the same time.
Year-to-date sales were down 1.8 percent at Kmart stores and 3.3 percent at Sears.
The company attributed the declines at Sears stores to fewer consumer electronics sales and at Kmart less-than-expected apparel, layaway and electronics sales.
After closing the stores, the company expects to generate as much as $170 million through sales of excess inventory and later more as the properties are sold, according to a news release.
Overall, the plan is expected to reduce the company's fixed cost by as much as $200 million.
In addition to the Sears and Kmart stores, the company also owns the brands Kenmore, Craftsman, DieHard, Lands' End, Jaclyn Smith and Joe Boxer.
Sears has not yet named the stores it intends to closes. The number of employees affected by the closures has not been identified either.