Sears Takes Holiday Bloodbath, Sets to Close Stores

By Chuck Sudo in News on Dec 27, 2011 5:45PM

Sears Holdings Corp. announced they plan on closing 100 to 120 Sears and Kmart stores across the country after a weak holiday sales period. It's the latest setback for the troubled retail giant. By coincidence, the announcement also comes a mere two weeks after Gov. Pat Quinn signed tax break legislation to keep the company's corporate headquarters in suburban Hoffman Estates.

Sears spokesman Chris Brathwaite addressed that deal in an email statement announcing their holiday numbers:

“We typically publish a release after the holidays as the fourth quarter is the critical performance period for our company. It’s important to know that under the legislation that was recently passed, if we don’t meet our obligations, we receive no benefits. We’re focused on improving our business and continuing to be a strong, contributing member of the Illinois business community.”

Sears also has a 15-year deal in place that lowers the amount of property taxes they have to pay. During the debate over whether to grant tax breaks to Sears and stock traders CME Group and CBOE Holdings, it was rumored that Ohio had offered the company a tax break package somewhere near $400 million to move to the Buckeye state. Sears also indicated Austin, TX as a possible new location for its corporate headquarters before the Illinois General Assembly drafted its package.

Performance of Sears stock dropped 23 percent in mid-morning trading.