Kmart to close by end of 2018

Visalia Kmart closure is part of Sears Holding Corporation’s restructuring in Chapter 11 bankruptcy

@TheSunGazette

VISALIA – Kmart in Visalia has become the latest cut in its parent company’s attempt to trim down its financial obligations.

On Oct. 15, Sears Holdings Corporation, the parent company of Sears, Kmart and Shop Your Way, announced it would be closing 142 unprofitable stores by the end of the year, including Kmart located at 3247 W. Noble Ave. in Visalia, as well as Kmart locations in Delano and Lemoore. These closures are in addition to the 46 store closures that were previously announced for closure sometime next month.

The list was released as part of the Company’s first day motions related to its voluntary Chapter 11 restructuring granted by the U.S. Bankruptcy Court for the Southern District of New York. Collectively, the interim approvals by the Court immediately improve the Company’s liquidity position and allow Holdings to continue its business operations throughout the financial restructuring process.

The Court entered an order granting the Company authorization to access its $300 million in senior priming debtor-in-possession (“DIP”) financing from its senior secured asset-based revolving lenders. The Company also received authorization to continue paying employee wages and benefits, and to honor member programs including warranties and promotions.

“The Court’s approval of our First Day motions is an important step forward in our financial restructuring process that will allow the Company to continue operating in the normal course and providing our customers and members with trusted service,” said Robert A. Riecker, Chief Financial Officer, and member of the Office of the Chief Executive.

In a letter to customers, also dated Oct. 15, the company said that even stores on the list are still open for business, that they are honoring all product warranties, protection agreements, guarantees, and loyalty programs and that they will continue to sell and accept gift cards and reward points. The company went on to state there is no impact to Sears Credit Card and Sears Mastercard holders. Closing sales will begin at a number of stores “in time for holiday shopping.”

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