USA: Kmart downscales Home Depot deal, cuts jobs
US retailer Kmart announced it would cut 200 jobs at its headquarters as part of ongoing efforts to streamline operations.
The Troy, Michigan-based discount retailer also lowered the maximum number of stores it is expecting to sell to The Home Depot from 24 to no fewer than 13. The previous deal had seen Kmart selling up to 24 stores to Home Depot for up to US$365m. The deal has been revised to include no fewer than 13 stores for $173m in cash, and up to 19 stores for $288.5m in cash," said Kmart in a press release.
Sales of four stores have already been completed for $59m. Payment for an additional nine stores is to be received in escrow within the next five days.
Separately, Kmart announced it is reducing staff at its headquarters by about 10%, which will likely affect about 200 employees.
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