Department Stores

Sears to shut 40 more stores early next year

Key Points
  • Sears is planning to shut 40 more stores next year.
  • This will be in addition to the 142 unprofitable stores the department store chain is already expected to close toward the end of 2018.
  • Liquidation sales at the 40 locations announced Thursday are set to begin late next week.
New Dave & Buster's location in Wayne, New Jersey takes over the second story of a Sears location at Willowbrook Mall
Sarah Whitten | CNBC

Sears Holdings said Thursday it plans to close 40 more stores early next year as it continues to slim its business and seeks to stymie losses under bankruptcy protection.

The retailer filed for bankruptcy on Oct. 15 with roughly 700 Sears and Kmart stores in operation. It announced at the time it would be closing 142 unprofitable stores and warned more closures could follow.

The additional store closures come as Sears is still looking to formally secure the money it needs to stay in operation long enough until it can find a potential buyer to avoid liquidation. It had interim approval for $300 million in emergency financing and was in talks with hedge fund ESL Investments for another $300 million loan, according to bankruptcy filings.

Talks with ESL though, stalled, after disagreements about who had first claim on some of Sears' few remaining assets, people familiar with the matter have told CNBC. ESL is led by Sears' chairman, Eddie Lampert.

Sears has now shifted to trying to finalize a separate second loan, people familiar tell CNBC. Those negotiations remain in flux, those people added.

The people requested anonymity because the information is confidential. Sears and ESL both declined to comment on the financing.

Sears said liquidation sales at the 40 locations set to close in February will start late next week. (See a full list below.) The accompanying Sears Auto stores will also be shut, according to the company.

Here are the 40 new stores Sears plans to shutter in February of 2019:

Kmart 26471 Ynez Road Temecula CA

Kmart 3443 W Addison Chicago IL

Kmart 3250 Clear Lake Road Springfield IL

Kmart 18 Elm Plaza Waterville ME

Kmart 805 New York Ave Huntington NY

Kmart 7101 Roosevelt Blvd Philadelphia PA

Kmart 1901 Lincoln Hwy North Versailles PA

Kmart Castro Perez Ave (Pr 122) San German Puerto Rico

Kmart 100 Ave. San Patricio Guaynabo / San Juan Puerto Rico

Kmart Betamces 400, Las Catalinas Mall Caguas Puerto Rico

Kmart 6077 S Packard Avenue Cudahy WI

Sears Airport Way Fairbanks AK

Sears 4604 E Cactus Road Phoenix AZ

Sears La Cumbre Plz Santa Barbara CA

Sears 470 Lewis Ave Meriden CT

Sears 801 N Congress Ave Boynton Beach FL

Sears 3342 Nw Federal Hwy Us#1 Jensen Beach FL

Sears 2300 E 17Th St Idaho Falls ID

Sears Marquette Mall Michigan City IN

Sears 7103 Democracy Blvd. Bethesda MD

Sears 5575 B Drive N Battle Creek MI

Sears 1740 Bonita Lakes Circle Meridian MS

Sears 1001 Barnes Crossing Road Tupelo MS

Sears 3320 Silas Creek Pkwy Winston Salem NC

Sears 3404 W 13Th St Grand Island NE

Sears 4355 Grand Canyon Dr Las Vegas NV

Sears 3065 Route 50 Saratoga Spgs NY

Sears 21182 Salmon Run Mall Watertown NY

Sears 987 E Ash St Piqua OH

Sears 1665 State Hill Road Reading / Wyomissing PA

Sears 344 Stroud Mall Stroudsburg PA

Sears 2197 Dave Lyle Blvd Rock Hill SC

Sears Southland Mall Memphis TN

Sears 401 Northgate Mall Chattanooga TN

Sears 198 Foothills Mall Maryville TN

Sears 1720 Old Fort Pkwy Murfreesboro TN

Sears 750 Sunland Park Dr El Paso TX

Sears Longview Texas Mall Longview TX

Sears 10101 Brook Road Glen Allen / Richmond VA

Sears 2500 Milton Ave Janesville WI

Sears was the Amazon of the 1930s. Here's where the retailer is today
Sears: The rise and fall of the iconic department store