Sears Brings the Joy by Announcing the Stores to Close

Following the story earlier this week, in which we reported that Sears Holdings (NASDAQ: SHLD) announced it would be closing 120 Sears and Kmart stores nationwide, the company has now listed 79 of the stores that will be shut down.

According to Reuters, SHLD the list of closures is split almost evenly between the two chains.

“The struggling retailer on Tuesday reported weak holiday sales and forecast earnings for the current quarter would fall by more than half compared to the year earlier results. It also said it tapped its credit line.”

The full list of stores to be closed can be found here.

In the earlier article, we reported CEO Louis D’Ambrosio’s comment that, “Given our performance and the difficult economic environment, especially for big-ticket items, we intend to implement a series of actions to reduce ongoing expenses, adjust our asset base, and accelerate the transformation of our business model. These actions will better enable us to focus our investments on serving our customers.”

In addition, according to an AP article, “Sears Holdings said that the declining sales, ongoing margin pressure and rising expenses pulled its adjusted earnings lower. The company predicts fourth-quarter consolidated adjusted earnings will be less than half the prior-year period’s $933 million. It also anticipates a non-cash charge of $1.6 billion to $1.8 billion in the quarter for a valuation allowance on some deferred tax assets.”

Reuters reported on Friday morning that, “Fitch Ratings on Thursday afternoon downgraded Sears to ‘CCC’ from ‘B’, citing a “continued deterioration” in earnings before interest, tax, depreciation and amortization (EBITDA), which it said could turn negative next year. Fitch said in a note it expects Sears’ liquidity to be “inadequate” in 2012. If the retailer can’t tap the markets or other sources, and if EBITDA stays where it is or falls, “there is a heightened risk of restructuring over the next 24 months.””

The released list does not include stores in Illinois, where, according to Reuters, “Governor Pat Quinn two weeks ago signed into law tax breaks aimed at keeping Sears and other Illinois-based companies from leaving the state.”

That will not come as any comfort to the thousands of people nationwide who are set to lose their jobs as the New Year begins. Spare a thought for those people while popping champagne corks on Saturday night. Not every family will be watching the ball drop with a smile on their face.

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