Burbank Kmart To Shutter In Early 2019

Ann Santiago
December 29, 2018

Last week, a bankruptcy court allowed Sears Holdings to sell its home improvement service businesses to Service.com for $60 million.

On the new list of stores to close are the Sears location at Westshore Plaza and the store at 9409 USA 19 in Port Richey, as well as the Kmart store on Highway 301 in Ellenton. Liquidation sales are set to begin in two weeks. The store, once a shopping mall mainstay, has slowly declined in recent years and was slow to respond to the trend in online shopping.

Sears was one of the four flagship stores at the Mall of America when it opened in August 1992.

The City of Rapid City tweeted that the closing of Kmart is more reflective of national retail issues, rather than anything local.

Sears filed for bankruptcy on October 15, and has previously announced more than 180 store closures.

This latest round of closings would take Sears closer to 400 remaining stores, not the 500 it was seeking to continue to operate.

Sears is down 1.1% in after-hours trading. But the only public bidder for those assets is the hedge fund controlled by Sears Chairman Eddie Lampert, who is the company's largest creditor and served as CEO until its bankruptcy. With its closure in March, there will be no more full-line Sears department stores left in Minnesota.

However, Lampert hasn't officially submitted a bid.

Failing a successful purchase bid, Sears is facing the possibility of liquidation, ending the company's 125-year run as one of the country's best-known retailers. Lampert says his plan would let 50,000 Sears employees keep their jobs.

The company also operates Hometown Stores in Mexia and Temple.

The court will choose the bid that recovers as much of the money Sears owes its lenders and vendors as possible, whether that means shutting the business down immediately or giving Sears more runway to restructure, Barbarosh said.

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