Kmart's magic number: 284
By Staff -- Home Textiles Today, 3/8/2002 12:00:00 AM
Troy, MI — Kmart hinted earlier in the week that it might divulge its store closing roster before its self-imposed deadline of March 11, and today it came through with the number. The 284 underperforming locations it will close include 271 discount stores and 12 supercenters in 40 states and one discount store in Puerto Rico.
Kmart reported that the liquidation sales generated from store closings and related cost savings will enhance its cash flow by approximately $550 million in 2002 and approximately $45 million annually thereafter. The closings are also expected to improve the company's earnings before interest, taxes and depreciation by about $31 million annually. The retailer currently has more than 2,100 locations.
The store closings will eliminate about $216 million in home textiles sales, according to HTT estimates.
The affected stores will remain open pending approval of the plan by the bankruptcy court. Liquidation sales will be completed on a store-by-store basis. Neither of its New York stores appears on the hit list, nor does the downtown Detroit supercenter the company opened in 2000.
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