Kmart Corporation announced earlier this week that it intends to close 326 under-performing stores as part of its Chapter 11 financial objectives review. This announcement includes Kmart's Big K store located at 111 Jericho Turnpike in Syosset. Kmart has submitted a list of the stores and asked the Bankruptcy Court to give final approval at a hearing in Chicago on January 28.

According to Kmart executives, this action is intended to enhance the company's financial and operating performance by allowing it to further reduce costs, improve cash flow, streamline distribution and focus its resources more efficiently.

The factors considered in evaluating the store portfolio were both financial and strategic, according to Kmart executives. Key financial metrics for each location, on both an historical and projected basis, included comparable store sales, gross margin, store cash flow and lease terms. Strategic considerations included an analysis of the competitive environment in local and regional markets, distance from distribution centers, and the location and number of other Kmart stores in the market.

"These closings reflect an emphasis on protecting and strengthening our competitive position in key strategic markets," said Julian Day, president and chief operating officer of Kmart. "To this end, we are planning an aggressive marketing campaign to remind our current and prospective customers about the outstanding products, service and value that will continue to be available at more than 1,500 Kmart stores in convenient locations across the nation, the Caribbean and Guam."

All stores will remain open pending Bankruptcy Court approval of the company's store-closing plan and completion of inventory clearance sales at these locations. The store-closing plan is expected to be reviewed by the Bankruptcy Court at the January 28 omnibus hearing and, if approval is granted, the inventory clearance sales would begin shortly thereafter. Although there is no specific time frame for when the Syosset location will close, all stores should be closing 60-90 days after the Bankruptcy Court's decision is made, according to Kmart executives. The distribution center in Texas is slated to close in March.

The announcement by Kmart means approximately 37,000 associates who work at the impacted stores and distribution center will be let go including 111 employees at the Syosset location. To help ease the transition for affected associates, Kmart will provide a range of benefits including supplemental separation pay, extended benefits, and job placement assistance.

According to Elenie, store manager #404 at Syosset's Kmart, no information can be given out at this time regarding anything pertaining to the store's closing.

"We deeply regret the impact these closings will have on our associates, customers and the communities where the stores are located," Chief executive James Adamson said. "This was a difficult and painful decision, particularly in light of its impact on thousands of dedicated associates who have worked so hard to help the company. But this is a necessary and important step for Kmart as we prepare for our imminent emergence from Chapter 11 protection."