Sacramento Sears store to close as retailer announces bankruptcy

Two stores owned by the retailer Sears in the Sacramento region will close in the wake of a bankruptcy filing made public Monday.

The Kmart in Placerville and the Sears on Florin Road are both slated for closure after the holiday season, the company said in a statement. The century-old chain known for offering everything from home appliances to football jerseys will attempt to restructure more than $5 billion in debt.

Sears Holdings Corp merged with Kmart 13 years ago and both brands will be affected.

The retailer has more than 700 stores nationwide and it has targeted 142 locations for closure. The retailer said in a statement that the locations will remain open through the holiday season.

“As we look toward the holiday season, Sears and Kmart stores remain open for business and our dedicated associates look forward to serving our members and customers,” said Edward S. Lampert, who stepped down as Sears Holdings’ CEO and remains board chairman. Sears said it plans to “liquidate” the merchandise in the closings stores which often means deeply-discounted sales for consumers.

The big box retail business has been notably challenged by the decline of shopping malls and challenges from e-commerce competitors such as Amazon in recent years.

“Over the last several years, we have worked hard to transform our business and unlock the value of our assets,” Lampert said. “While we have made progress, the plan has yet to deliver the results we have desired, and addressing the Company’s immediate liquidity needs has impacted our efforts to become a profitable and more competitive retailer.”

This story was originally published October 15, 2018 at 11:33 AM.