Kmart deal could lead to loss of 1,200 jobs

TROY, Mich. – Kmart Holding Corp.’s sale of 13 stores to The Home Depot Inc. could cost up to 1,200 Kmart employees their jobs in coming months.

Under an agreement announced in June, Kmart will sell no fewer than 13 stores for $173 million in cash and up to 19 stores for $288.5 million. Nine of the stores already have been sold.

The Kmart employees being laid off will receive no severance pay, company spokesman Steve Pagnani told the Detroit Free Press for a Friday story. They will receive benefits owed to them, such as unused vacation time, he said.

The first three stores Kmart is selling to Home Depot will close later this month. They are in Hanover, Pa.; New Milford, Conn.; and Champaign, Ill., Pagnani said. Stores set to close in October are in Broomall, Pa.; Tempe, Ariz.; Levittown, N.Y.; Huntington Beach, Orange, Seaside and Thousand Oaks, Calif.; and Coconut Grove and Jacksonville Beach, Fla. The 13th store, in Dallas, has been vacant since 2003.

Kmart owned four of the stores. Atlanta-based Home Depot paid $59 million for them, giving the Troy-based retailer a net gain of $43 million, the company said in a Securities and Exchange Commission filing.