2 GA Kmart Stores To Close In Sears Bankruptcy

ATLANTA, GA — Sears, the struggling 125-year-old retailer, announced it has filed for Chapter 11 bankruptcy early Monday, the same day a $134 million debt payment was due from the Illinois-based chain. Sears Holdings, the parent company of Sears as well as Kmart, made the filing in federal court in New York, and the financially strapped business will be closing two stores in Georgia.

The retailer, which has been forced to close hundreds of stores in recent months, said it will close another 142 unprofitable locations near the end of the year. Those closings are in addition to 46 locations that were already set to close by the end of November.

According to court filings by Sears, the retailer will be shuttering the following Georgia Kmart stores, no new Sears locations are targeted:

• Kmart: 400 Crosstown Road Peachtree City
• Kmart: 6239 Turner Lake Road, Covington

SEE ALSO: 3 Georgia Sears Stores Are Closing

The company is seeking a buyer for the majority of its remaining stores but said locations will remain open for the holiday shopping season. CEO Edward S. Lampert will also step down effective immediately, the company announced, but will remain chairman.

Mohsin Meghji, managing partner of M-III Partners, has been named Sears Holdings' chief restructuring officer, and an independent restructuring committee has been formed.

"Over the last several years, we have worked hard to transform our business and unlock the value of our assets," said Lampert said in a statement issued early Monday. "While we have made progress, the plan has yet to deliver the results we have desired, and addressing the Company's immediate liquidity needs has impacted our efforts to become a profitable and more competitive retailer.

"As we look toward the holiday season, Sears and Kmart stores remain open for business and our dedicated associates look forward to serving our members and customers," Lampert added.

Sears, which last year sold off its famous Craftsman brand, has about 700 remaining stores and 68,000 employees —down from the 1,000 stores and 89,000 workers it had in early 2018, according to CNN.

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Joe Vince, Patch Staff, contributed to this report.

PHOTO: A sign announcing the store will be closing hangs above a Sears store on August 24, 2017 in Chicago, Illinois. Sears Holdings Corporation, which owns both Sears and Kmart, said today it was planning on closing more stores as it files for bankruptcy. (Photo by Scott Olson/Getty Images)