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Sears expects to incur $443M in charges from store closures

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Sears expects to incur $443M in charges from store closures

Sears Holdings Corp. expects to incur about $443 million in charges from the closure of 142 unprofitable stores, the cash-strapped department store chain disclosed in a Dec. 18 SEC filing.

The company announced its decision to shutter the stores, which include 65 Kmart and 77 Sears locations, in October, shortly after filing for bankruptcy protection.

Sears said the expected charges include $81 million in markdowns, $9 million in severance costs, $335 million in lease termination costs, $12 million in other related charges and $6 million in depreciation.

The estimated hit is expected to reflect in the third and fourth fiscal quarters of 2018, the company said.

The announcement comes about a week after Sears was reported to have hired a real estate firm to sell about 500 of its U.S. department stores, a move that could complicate Chairman Eddie Lampert's $4.6 billion takeover offer.