The Detroit Free Press reports that questions are being raised about Kmart’s list of stores that will be shuttered in its latest round of 326 closings.
While more than a sixth of the fleet is being closed, critics say that the company is eliminating some nicer, newer locations and keeping older and dingier stores.
Kmart officials say its decisions were based on more than just sales and customer count, but also on local competition, distance from distribution centers, and proximity of other Kmart stores.
However, according to the Free Press, “anonymous letter-writers who claim to be Kmart employees said the company was forced to close about half the supercenters, get out of entire markets and abandon stores in which it made large investments because of ‘corrupt’ and unethical real estate transactions. In a letter to Rep. Billy Tauzin, R-La., about the store closings, the letter writers say they are the people who tipped off the Securities and Exchange Commission to accounting irregularities at Kmart,” letters that launched federal probes into the company.
While more than a sixth of the fleet is being closed, critics say that the company is eliminating some nicer, newer locations and keeping older and dingier stores.
Kmart officials say its decisions were based on more than just sales and customer count, but also on local competition, distance from distribution centers, and proximity of other Kmart stores.
However, according to the Free Press, “anonymous letter-writers who claim to be Kmart employees said the company was forced to close about half the supercenters, get out of entire markets and abandon stores in which it made large investments because of ‘corrupt’ and unethical real estate transactions. In a letter to Rep. Billy Tauzin, R-La., about the store closings, the letter writers say they are the people who tipped off the Securities and Exchange Commission to accounting irregularities at Kmart,” letters that launched federal probes into the company.
- KC's View:
- We wonder if Kmart also might close certain locations that it knew it could get better prices for from Wal-Mart and other competitors…
