Sears to close 89 stores, take charges

By Jennifer Waters, CBS.MarketWatch.com Last Update: 9:37 AM ET Jan 4, 2001 NewsWatch Latest headlines Get Alerted

HOFFMAN ESTATES, Ill. (CBS.MW) -- Sears, Roebuck and Co. joined the growing list of retailers shuttering under-performing stores Thursday after a lackluster holiday season.

Sears (S: news, msgs) said it will close 89 stores, only four of them full-line department stores, and will take a $100 million after-tax charge for the asset. Also, the department store retailer said it will take another $100 million charge in the fourth quarter to cover losses related to Sears Termite and Pest Control.

"Our actions reflect our heightened focus on productivity and returns," CEO Alan Lacy said in a press statement. "We will continue to deploy resources and enhance overall company profitability."

The actions come on the heels of a 1.1 percent drop in comparable-store sales for December, the crucial holiday selling period. Total store sales were flat at $4.43 billion.

Sears said it will lock the doors on 53 NTB tire stores and 30 hardware stores. The closings should be completed in the first quarter.

"By closing under-performing NTB and hardware stores, we will enhance the profitability of Sears off-the-mall businesses," Lacy said. "Sears Termite and Pest control is a non-core business for Sears, and we are evaluating strategic options for this business."

Just last week, Sears' competitor and hometown neighbor, Montgomery Ward Co. said it was closing all its stores.

http://cbs.marketwatch.com/archive/20010104/news/current/s.htx?source=htx/http2_mw

-- Martin Thompson (mthom1927@aol.com), January 04, 2001