Kmart to Sell 18 Stores to Home Depot
NEW YORK -- Retailer Kmart Holdings Corp. on Monday finalized a deal to sell 18 of its stores to Home Depot for $271 million, according to a Reuters report.
The original pact called for the sale of as many as 24 stores for up to $365 million, but the deal was revised
this month because of certain conditions not being met with regard to some stores.
"The stores we are retaining from the originally announced transaction have been operating profitably and better than plan for this year," Julian Day, president and ceo of Kmart, said in a statement.
Kmart said it expects proceeds of $259 million for 17 of the stores to be released from escrow by the end of the current fiscal quarter, including $54.6 million received last quarter. It expects to receive the remaining sales proceeds during the fourth quarter, it said.
Kmart, which emerged from bankruptcy last year and recently announced sales of up to 54 stores to Sears, Roebuck for $621 million, also said it had been granted an option that could increase the minimum number sold to 15 for minimum proceeds of $214 million.
The Troy, MI-based retailer also said that nearly 230 employees, or 41% of those affected by the deal, will be offered jobs at other Kmart locations.
In addition, Kmart said Home Depot expects to employ about 200 workers per store, significantly above the current level of employment at the existing Kmart stores.
The original pact called for the sale of as many as 24 stores for up to $365 million, but the deal was revised
"The stores we are retaining from the originally announced transaction have been operating profitably and better than plan for this year," Julian Day, president and ceo of Kmart, said in a statement.
Kmart said it expects proceeds of $259 million for 17 of the stores to be released from escrow by the end of the current fiscal quarter, including $54.6 million received last quarter. It expects to receive the remaining sales proceeds during the fourth quarter, it said.
Kmart, which emerged from bankruptcy last year and recently announced sales of up to 54 stores to Sears, Roebuck for $621 million, also said it had been granted an option that could increase the minimum number sold to 15 for minimum proceeds of $214 million.
The Troy, MI-based retailer also said that nearly 230 employees, or 41% of those affected by the deal, will be offered jobs at other Kmart locations.
In addition, Kmart said Home Depot expects to employ about 200 workers per store, significantly above the current level of employment at the existing Kmart stores.
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