Kmart Corp. said today it would close 284 of its 2,114 stores and cut 22,000 jobs as part of its reorganization under bankruptcy protection, resulting in a charge of $1.1 to $1.3 billion.
The stores to be closed include 271 Kmart discount stores and 12 Kmart Supercenter retail outlets in 40 states, and one Kmart store in Puerto Rico. The closings are expected to enhance the retailer's cash flow by $550 million.
Kmart filed for voluntary Chapter 11 bankruptcy protection on Jan. 22 because of competition from Wal-Mart Stores Inc. and Target Corp. and weak holiday sales that left the retailer strapped for cash.
