ASSOCIATED PRESS / FILE
Kmart will close more than 300 more stores, eliminating more than 20,000 jobs, as part of its restructuring efforts.
DETROIT >> Kmart Corp. said today it will close 326 stores and cut 30,000 to 35,000 jobs to cut costs as the company announced plans for a spring exit from bankruptcy. Kmart to close
326 more storesHawaii stores are not affected by the move
By Alexandra R. Moses
Associated PressNo Hawaii stores were on the closure list released today by the retailer.
The news came as Kmart, which filed for Chapter 11 protection nearly a year ago, reported another year of disappointing holiday sales as it continues to struggle against discount rivals Wal-Mart and Target.
The store closings are subject to court approval; Kmart is scheduled to appear in U.S. Bankruptcy Court in Chicago on Jan. 28. The Troy, Mich.-based retailer operates roughly 1,830 stores and has about 228,000 employees.
Chief executive James Adamson said the company plans to emerge from bankruptcy by April 30.
"We don't want to remain in bankruptcy a day longer than necessary," he said in a conference call with reporters.
Today's announcement marks the second round of closings in less than a year. Last March, Kmart closed 283 stores, affecting 22,000 jobs. After these closings, the retailer will be roughly one-third smaller than when it declared bankruptcy on Jan. 22, 2002.
The closings, which also include one distribution center in Texas, are in 44 states and Puerto Rico.
The retailer said today that December same-store sales, or sales at stores open at least a year, were down 5.7 percent from the same period in 2001.
Kmart needs to close stores while under bankruptcy protection to allow it to get out of leases. The stores targeted for closure include those with unprofitable leases, underperforming stores and those where competitive pressure is high.
Kmart
