Transformco lays off around 250 at headquarters
Sears and Kmart’s corporate workforce is shrinking along with its store count.
Sears’ parent company, Transformco, filed a notice Aug. 29 with the Illinois Department of Commerce and Economic Opportunity saying it was laying off approximately 250 employees from its headquarters in Hoffman Estates.
According to the notice, the “employment separations related to this reduction in force will begin on or about October 28, 2019. The employment separations are expected to be permanent; however, there are no current plans to close the entire facility.”
However, Transformco said in a statement to USA TODAY Wednesday that the “filing referenced refers to actions that were taken last week. There is no additional action planned for October.”
Last week, news spread that nearly 100 more Kmart and Sears stores will close by the end of the year.
See the list: Kmart, Sears closing additional stores by the end of the year. Is your location closing?
Aug. 6 Sears, Kmart closing announcement: 21 Sears and five Kmart locations to close in October
In February, former Sears CEO Eddie Lampert struck a last-minute deal to buy Sears’ assets’ out of bankruptcy and keep about 400 stores open under a new entity, Transform Holdco, also known as Transformco.
Lampert, who relinquished the CEO role when the company filed for bankruptcy, was the company’s largest shareholder and creditor at the time of the bankruptcy.
On Aug. 6, Transformco announced it would close 26 stores – 21 Sears and five Kmart locations – in October. In announcing the closures, the company said more closings were still a possibility.
“Following these steps, we will continue to evaluate our network of Sears and Kmart stores and cannot rule out additional store closures in the near term,” the company’s Aug. 6 statement said. “Our goal remains to return the company to profitability and preserve as many jobs as possible in the communities we serve.”
Follow USA TODAY reporter Kelly Tyko on Twitter: @KellyTyko