DETROIT — Two Utah stores are among 326 nationwide that will be closed by Kmart Corp., the company said Tuesday.
Kmart said it also would cut 30,000 to 35,000 jobs under its plan to emerge from bankruptcy by April 30, chief executive James Adamson said.
Big K stores at 3656 Wall Ave. in South Ogden and 889 S. Main in Cedar City will be closed.
Last March, Kmart closed 283 stores, affecting 22,000 jobs. Stores closed in Utah were in Brigham City, Farmington, Park City and Sandy. The Troy-based retailer currently operates roughly 1,830 stores. After the closures, it will have 18 remaining in Utah, including 12 Big K stores, according to the company's Web site.
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KMART CORPORATION RELEASES LIST OF STORE CLOSINGS
The store closings are subject to court approval. Kmart is scheduled to appear in U.S. Bankruptcy Court in Chicago on Jan. 28.
The closings, which also include one distribution center in Texas, are in 44 states and Puerto Rico.
"We're all upset. I've been here since 1998. I helped build this store up," said Sharon Knight, an employee at a Detroit Kmart who learned Tuesday that her store is one of those closing.
Knight, who works behind the jewelry counter, said employees were told the store is planning to close within 60 to 70 days. The Detroit Kmart store slated for closure is one of just two in the city.
Kmart filed for bankruptcy nearly a year ago after a stock dive and disappointing 2001 holiday sales.
The company needs to close stores while under bankruptcy protection to allow it to get out of leases. The stores targeted for closure include those with unprofitable leases, underperforming stores and those where competitive pressure is high.
Ron Hutchison, the company's chief restructuring officer, said Kmart's common stock will have no value once Kmart emerges from bankruptcy.
Kmart also said Tuesday its same-store sales for December were down 5.7 percent from the same period last year.
Contributing: The Associated Press; Brice Wallace