Kmart purchased Sears in 2005, forming the Sears Holding Corporation. Sears had been the largest U.S. merchandise retailer in the United States until 1989 when Walmart surpassed it.
The Sears store closings will leave the brand with fewer than 1,500 stores, down from more than 3,500 in 2011. Sears Holding Corporation obtained a $200 million line of credit in December to help offset declining revenue.
“As Sears Holdings has consistently shown, we will take actions to adjust our capital structure, generate liquidity and manage our business to enable us to execute on our transformation while meeting all of our financial obligations. This new standby letter of credit facility further demonstrates that Sears Holdings has numerous options to finance our business strategy,” said Jason M. Hollar, Sears Holdings’ chief financial officer, in a statement about the line of credit.
The corporation closed more than 100 Kmart stores in 2016 and the recently announced closings will bring the number of stores in operation to fewer than 800.
In addition to the new infusion of cash, CNN reported in December that the company may be looking to sell off some of the real estate it owns as well as sell or partner off on some of its well-known brands such as Kenmore and Craftsman.
Updated on 1/5/16 to include store closings announced on 1/4/16.