Retail

More Kmarts Closing Down

Kmart is closing even more stores.

More Kmart stores in at least 13 states will be closed by mid-December, according to a Business Insider report.

The closings come after Sears Holding Corp., Kmart’s parent company, announced it was closing 68 Kmart stores and 10 Sears locations across the country over the summer.

Kmart has closed about a third of its stores in the past 10 years, and the embattled retailer recently had to address reports that it was planning on shutting down completely after rumors of a liquidation sale began to emerge, according to Fortune.

This is just more in a line of bad news for Sears, which just last month reported a disappointing second quarter sales decline of 3.3 percent at its Kmart locations and a 7 percent decline at its Sears stores, according to Retail Dive.

Last week, Moody’s Investors Service downgraded Sears’ speculative grade liquidity rating down to SGL-3 from SGL-2.

Sears will “continue to rely on external financing and the monetization of its alternative assets to fund its operating losses,” Moody’s Vice President Christina Boni said in a statement.

Moody’s has estimated Sears’ negative operating cash flow at $1.5 billion this year.

It’s been a bumpy ride to the bottom for Kmart, which was a larger retailer than Walmart 25 years ago but now only has revenue of about $10 billion annually, compared to Walmart’s $280 billion as the nation’s largest retailer, according to Fortune.

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