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Nevada spared from store closings

Tuesday, July 25, 2000 | 11:30 a.m.

THE ASSOCIATED PRESS

TROY, Mich. -- Kmart Corp., the nation's third-largest retailer, is closing 72 of its less-profitable stores in 28 states -- not including Nevada, affecting 5,000 workers, in an effort to improve earnings.

While most of the stores being closed are marginally profitable, Kmart said they didn't justify additional investment because of factors including their location and suitability for expansion. They include 66 traditional Kmarts and six Super Kmarts, most of which will close by Nov. 1, and represent just over 3 percent of all Kmart stores.

Hourly workers at the affected stores will lose their jobs, but are being advised to apply to other Kmart locations; managers are being transferred, Kmart spokesman Steve Pagnani said Tuesday.

The retailer also will put the piles of merchandise filling its warehouses on sale and invest in more efficient inventory control. It did not say how many jobs would be lost because of the closures.

As a result, the retailer will take a one-time restructuring charge of $740 million during its second quarter. Those earnings are scheduled to be released Aug. 10.

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