Struggling Sears announces store closings, Baxter Sears store not affected
BAXTER--The Sears store in Baxter, a franchise store, is not part of the recent announcement of closures of corporate stores in the chain. Sears Holdings Corp. announced the closing of 150 stores, comprised of 109 Kmart and 41 Sears stores. Toget...
BAXTER-The Sears store in Baxter, a franchise store, is not part of the recent announcement of closures of corporate stores in the chain.
Sears Holdings Corp. announced the closing of 150 stores, comprised of 109 Kmart and 41 Sears stores. Together, the stores generated about $1.2 billion in sales last year but ran up an adjusted loss of about $60 million before interest, taxes, depreciation, and amortization, Reuters reported.
The Baxter Sears store is part of the Sears Hometown Stores, which split in 2012 from Sears Holdings Corp. into a separate publicly traded company.
Other stores in the state are on the list for closing, including the Kmart in Detroit Lakes, the Sears store in Coon Rapids and the Sears Store in Mankato, USA Today reported. Near the state borders, the closings include the Sears store in Fargo, N.D., and the Kmart in Sioux Falls, S.D.
Struggling retailer Sears Holdings Corp. stated Thursday its comparable sales for November and December fell by 12-13 percent, the latest department store operator to report disappointing sales during the holiday shopping season.
The company's shares rose 6.1 percent, however, after its earlier announcement it would sell its Craftsman tools business to Stanley Black & Decker Inc for $900 million. The sale, which ends a seven-month long search for a buyer, has been seen as a key step in the company's efforts to turn its business around. Investors cheered the move, sending the stock up as much as 8 percent, even as the company reported a 12-13 percent drop in comparable sales during the holiday season.
Once the largest U.S. retailer, Sears has lost its standing as customers move to online shopping or rivals such as Wal-Mart Stores Inc. and has struggled with years of losses and declining sales. Sears previously stated in addition to Craftsman, it was looking at options for its Kenmore and DieHard brands.
Sears had set up a special committee to market real estate properties with the goal of raising more than $1 billion.
The company's weak holiday sales announcement comes a day after Macy's Inc. and Kohl's Corp. cut their 2016 profit forecasts, citing a bigger-than-expected drop in November and December sales.
Stanley Black & Decker Inc, in its second big acquisition in three months, agreed to buy Sears Holdings Corp's Craftsman brand, giving the company known mainly for power tools an entry into the lawn and garden equipment market.
The $900 million deal adds Craftsman lawnmowers, snowblowers and barbecue grills to Stanley Black & Decker's line of power and hand tools-a market where Craftsman is also strong.
The move into the lawn and garden market-estimated by Stanley B&D to be worth $12 billion-follows the acquisitive company's agreement in October to buy Newell Brands Inc.'s tool business for $1.95 billion.
Sears, which gets a much-needed infusion of cash from the deal, will continue to offer products carrying the 90-year-old Craftsman brand at its namesake and Kmart stores through a perpetual license from Stanley B&D. With only about 10 percent of Craftsman-branded products sold outside of Sears' retail channels, the deal will give Stanley B&D the right to expand the brand in non-Sears channels.
Business Insider reported most of the stores slated to close will start liquidation sales immediately and go out of business between March and April.