Sears Closing Dozens More Stores

(RTTNews) - Sears Holdings Corp. (SHLD) will close an additional 72 stores as part of its efforts to bring its Sears and Kmart stores back to profitability, Business Insider reported Tuesday.

The closing will reportedly include 49 Kmart stores, 16 Sears stores and 7 Sears Auto Center locations, with most of the stores to shut down by September.

The closures are in addition to Sears' announcement earlier this year that it will shut down hundreds of stores to increase its financial flexibility and improve long-term operating performance.

On completion of the latest store closures, the company's store count will come down to 1,200 from 2,073 stores five years ago.

The struggling retailer said in April that it will close 142 stores and increase its cost savings target to $1.25 billion from $1 billion. It also completed its earlier announced closures of 150 non-profitable stores, comprised of 108 Kmart and 42 Sears locations.

This year, Sears has divested its Craftsman brand for about $900 million and laid off hundreds of employees to improve its cost savings amid a continued decline in sales.

In March, the department store operator's shares fell sharply after its annual report said historical operating results indicated substantial doubts exist related to the company's ability to continue as a going concern.

Sears' financial woes that have deepened in recent months. In order to preserve cash, the company said in May that it would delay the repayment of a $500 million loan.