Sears Holdings plans to close 20 more Seritage-owned stores in the U.S., in addition to the more than 200 closures that have already been announced by the department store chain.
The closures were first reported by Business Insider, which said store employees were told about the retailer's plans on Thursday. The news was later confirmed in a filing with the Securities and Exchange Commission on Friday morning by real estate investment trust, or REIT, Seritage, which owns the properties.
In 2015, Sears sold 235 Sears and Kmart store locations to Seritage as part of an agreement in which Sears Holdings leases the stores back from the REIT. If a store is "unprofitable as defined" in the agreement between the companies, Sears has the option to exit the lease by making a payment equal to one year of rent, a Sears spokesman told CNBC.
The locations slated for closure include 18 Sears stores and two Kmart stores, which are located in Sarasota, Florida; Roseville, Michigan; Watchung, New Jersey and East Northport, New York, among other locations, according to Business Insider.