Business & Real Estate

Lodi Kmart to close this summer

FILE- In this Nov. 9, 2012, photo, a Sears store is shown in Hialeah, Fla. Sears Holdings Corp. is announcing Thursday, April 21, 2016, that it will close 68 Kmart stores and 10 Sears stores as it struggles to restore profitability.
FILE- In this Nov. 9, 2012, photo, a Sears store is shown in Hialeah, Fla. Sears Holdings Corp. is announcing Thursday, April 21, 2016, that it will close 68 Kmart stores and 10 Sears stores as it struggles to restore profitability. AP

A Lodi Kmart store will close as part of nationwide shutdown of 68 Kmart and 10 Sears stores announced Friday.

The closures, which include three other Kmart stores in California but no Sears stores, took into account store performance and the timing of lease expirations. The other Kmarts to close in the state are in Dinuba, Tulare and Wasco.

The Lodi Kmart store, 520 Cherokee Lane, will close in late July. The store will start a liquidation sale on May 12.

In the culling of Sears and Kmart stores from its roster of outlets, the company hopes to generate cash from liquidation and from the sale or sublease of real estate, parent company Sears Holdings said in a press release.

Earlier in the year, Sears Holdings closed the Kmart at 8501 Auburn Blvd. in Citrus Heights. At that time, a store spokesman said the closing was part of a nationwide effort to reduce expenses and adjust asset base.

Founded in 1962, Kmart has struggled in a retail environment altered by the expansion of Wal-Mart and the growth of online players such as Amazon.com.

In 2002, Kmart closed more than 250 stores in 40 states and Puerto Rico, cutting 20,000 positions, as part of a bankruptcy restructuring. That round included closure of its store at 6100 Mack Road in Sacramento.

Kmart purchased Sears for $11 billion in 2005, forming a new corporation under the name Sears Holdings Corp., based in Hoffman Estates, Ill.

Since then, more Kmart store closings have followed, including rounds in 2011 and 2014, as Sears Holdings has struggled to compete.

“We’re focusing on our best members, our best categories and our best stores as we work to accelerate our transformation,” said Sears Holdings Chairman and CEO Edward S. Lampert, in a press release on Friday.

Lodi Kmart employees will receive severance pay and have the opportunity to apply for open positions at other Kmart or Sears stores.

Bill Lindelof: 916-321-1079, @Lindelofnews

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