4 June 2004
Kmart To Sell Stores To Home Depot
Posted by Zane under: News .
Very impressive move by Home Depot. I’m sure that $365 million is a fraction of what it would cost to build 24 new stores.
CHICAGO (Reuters) - Kmart Holding Corp. on Friday said it will sell up to 24 stores to home improvement chain Home Depot Inc. for up to $365 million as part of its strategy to improve profit after emerging from bankruptcy last year.
The exact number of stores, locations, and total sales price will be based on the satisfaction of certain conditions to occur within the next 60 days, Kmart said.
The discount retailer, which operates more than 1,500 stores, closed 600 of its stores while in bankruptcy between January 2002 and May 2003.
Last week the company said it would focus on improving merchandising and customer service in hopes of winning back shoppers who defected to other retailers.
Home Depot, the largest home improvement retailer, has more than 1,700 stores.
Shares of Kmart closed at $54.86 on Thursday on the Nasdaq, after rising to a post-bankruptcy high of $55.54 earlier in the day.
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