Sears Says Report On Store Closures ‘Inaccurate’

Sears Holdings Corp (NASDAQ:SHLD), the struggling retailer headed by Edward Lampert rebuffed the report from Seeking Alpha regarding its store closures and layoffs.

The financial news and market tracker reported that Sears Holding Corp (NASDAQ:SHLD) plans to close more than 100 stores and eliminate more than 5,000 jobs before Christmas.

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The report indicated that the most affected states by the planned job cuts and store closures of Sears Holdings Corp (NASDAQ:SHLD) would be Indiana, Michigan and Pennsylvania. The retailer’s closures include 46 Kmart stores, 30 Sears stores and 31 Sears auto center locations. Around 5,457 workers are expected to lose their jobs.

Reaction from Sears Holdings Corp

In an e-mailed statement to USA Today, Howard Riefs, the spokesperson for Sears Holdings Corp (NASDAQ:SHLD) emphasized that store and closures reported by Seeking Alpha was no accurate

“As we stated in our (second quarter earnings report), we disclosed that we would be closing unprofitable stores as leases expire and in some cases will accelerate closings when it is economically prudent…We would consider closing additional stores during the remainder of the year,” according to Riefs.

He added that the management of Sears Holdings Corp (NASDAQ:AHLD) believed that “the store continue to play an integral role” in the company’s transformation. He also emphasized, “If a store is not generating a profit, it is straightforward that the store should be considered for closure.”

Furthermore, Riefs said the company will provide update regarding its store count in its third quarter financial results later this year. According to him, “All of these closing stores have been previously notified, and their associates and teams advised.”

“We’re not going to go store by store since we don’t do that outside our quarterly results,” said Riefs.

Stock action

The shares of Sears Holdings Corp (NASDAQ:SHLD) were trading at $36.69 per share, up by more than 6% at the time of this writing around 2:15 in the afternoon in New York.

Last Monday, Sears Holding Corp (NASDAQ:SHLD) announced its plan to raise $625 million in debt rights offering to raise funds and lease seven of its distressed stores to Primark. The announcement drove Sears’ stock higher by 23%.