Struggling department store chain Kohl's has announced it will permanently close 27 “unprofitable” stores in 14 states, including 10 in California alone, in an emergency move to avoid bankruptcy.
The company announced this in a press release. contained a list of locations It will be closed permanently. The closure is expected to be complete by April.
Kohl's has faced significant challenges in recent months, including a dismal earnings report and a leadership change amid economic headwinds.
“We always take decisions like this seriously,” Tom Kingsbury, Kohl's outgoing CEO, said in a statement.
“As we continue to build our long-term growth strategy, it is also important that we take difficult but necessary steps to support the health and future of our customers' and our teams' businesses.”
Kohl's said affected employees had been “notified” and “offered competitive severance packages or the opportunity to apply for other open positions at Kohl's.”
It is unclear how many employees were affected. The Post has reached out to Coles for comment.
Kohl's, which opens and operates more than 1,100 stores nationwide, has seen sales decline for 11 consecutive quarters.
The Wisconsin-based retailer reported a 9.3% decline in same-store sales in the third quarter. The company also lowered its full-year forecast for the third consecutive quarter.
Kohl's now expects full-year net sales to decline 7% to 8%, compared with previous expectations of a 4% to 6% decline.
Customer visits to Kohl's fell an average of 6.2% in the third quarter, compared to an average decline of 3.4% in the previous two months, according to data from Placer.ai.
Sales for the fourth quarter, which includes the holiday period, have not yet been reported.
Since January last year, Kohl's stock price has plummeted more than 50%.
The announced closures come just days before Ashley Buchanan, a former Walmart executive and recent CEO of Michaels, will replace Kingsbury as chief executive.
In late November, Coles announced that Kingsbury would step down after less than two years at the company.
Mr. Kohl's struggles are symptomatic of problems that have plagued other department stores in recent years.
Macy's is closing many stores, while other retail giants including J.C. Penney, Neiman Marcus and Sears are filing for Chapter 11 bankruptcy protection.
Macy's announced Thursday that it will close 66 stores. Last February, the company announced that it would close 150 stores, or about one-third of its locations, by the end of 2026.
Department stores are grappling with significant challenges to their business models, including the rise of e-commerce and changing consumer preferences, especially among Gen Z consumers, who prioritize experiences such as travel and dining.
Kohl's and other department store chains have also struggled under the weight of persistently high inflation, which has left consumers paying more for essentials and less discretionary spending.
