MENOMONEE FALLS, Wis. -- Kohl’s announced Thursday its plans to close 18 underperforming stores this year.
The retailer announced the plan Thursday along with its fourth-quarter results.
The company has not said which of its locations will be affected by the closures. The specific locations will be announced next month.
The company released a statement:
“Kohl’s continues to explore ways to enhance shareholder value through the optimization of its existing store portfolio. The closures are expected to generate annual SG&A savings of approximately $45 million and annual depreciation savings of approximately $10 million. The Company currently expects to incur approximately $150 – $170 million in charges as a result of these planned closures and the organizational realignment at the Company’s corporate offices which occurred earlier this month. The Company estimates that approximately $55 – $65 million of the charge will be recorded in the first quarter of 2016, with the remainder recorded in the second quarter.”