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Kmart to close two additional stores in Detroit

Kmart will be closing two additional stores in the Detroit area in October.
Kmart will be closing two additional stores in the Detroit area in October.
Richard Weaver/getmaximpact.com

The Detroit Free Press is reporting today that Kmart the closing two additional stores in the Detroit area in October displacing 270 employees. The stores include 19990 Telegraph Road in the city of Detroit and 16705 Ford Street in Southgate.

Your Examiner learned both stores have already been removed from store locator feature of Kmart.com. Instead, shoppers are being directed to nearby stores in Livonia and Taylor respectively.

The stores for new additions to a lengthening list of store closures in the state of Michigan. These include Bad Axe, Big Rapids, Lansing, Petoskey, Washtenaw, and White Lake.

This report follows yesterday’s announcement from Sears Holding Company, parent company for the Kmart and Sears retail chains, that online purchases from either company’s website could be shipped to the stores of the other company as a convenience to their customers.

Kmart was headquartered in the Detroit area making it part of Detroit's culture. Thus was until the chain purchased Sears following Kmart’s 2002 bankruptcy filing. The combined company, known as Sears Holding Company, is located Hoffman Estates, Illinois. The company still operates a training center in Troy at the corner of Coolidge Highway and 14 mile Road.

With the closure of the Southgate Kmart the chain will be left with no stores in the area known as “Downriver Detroit” other than the store in Taylor.

On May 3 the chain reported a net first quarter loss of $402 million. After adjustments the loss was cut to $221 million which compared to a loss in the first quarter of 2013 of only $21 million.

"Sears is undergoing a significant transformation, and we fundamentally are changing the way we do business," said Edward S. Lampert, Sears Holdings' Chairman and Chief Executive Officer, in explaining the poor results while giving investors hope for the future.