Warren Kmart to close

Staff report

WARREN

The Warren Kmart store at 2485 Parkman Road will close this fall, a Sears Holdings spokesman said Wednesday.

The store, which opened in November 1980, will close to the public in mid-November. The store will begin its liquidation sale Aug. 30.

“Store closures are part of a series of actions we’re taking to reduce ongoing expenses, adjust our asset base and accelerate the transformation of our business model,” the spokesman said in a statement. “These actions will better enable us to focus our investments on serving our customers and members through integrated retail – at the store, online and in the home.”

Customers with layaway contracts at the store have a couple of options: Pay off the contract early; or transfer their layaway contract to a neighboring store or online.

The Warren store has 68 employees. Those associates who are eligible will receive severance and have the opportunity to apply for open positions at other area Sears or Kmart stores. Most of the associates are part time/hourly. No other local stores will be closing, the spokesman said.

Sears Holdings posted an update Monday on its second-quarter performance.

The company expects its second-quarter earnings, which will be posted Aug. 20, to come in with improved adjusted earnings compared with the prior-year period.

The adjusted earnings are expected to be between $189 million and $249 million, before an additional $26 million in rent expense from a recent transaction with Seritage Growth Properties and joint ventures entered into with General Growth Properties Inc., Simon Property Group and The Macerich Co.

The company expects net income attributable to holdings’ shareholders for the quarter ending Aug. 1 will range between about $155 million and $205 million, or between $1.46 and $1.92 income per diluted share.

During the first quarter of 2015, Sears Holdings reported net loss attributable to shareholders of $303 million or $2.85 loss per diluted share or for the first quarter of 2015 compared with a loss of $402 million or $3.79 loss per diluted share or for the first quarter last year.

Domestic adjusted earnings of $141 million in the first quarter of 2015 compared to $178 million in the prior year first quarter, which was the third-consecutive quarter of improved performance.