Kohl’s, the struggling chain of department stores, said it will permanently close 27 “underperforming” locations in 14 states, including 10 in California alone as the company takes emergency measures to avoid bankruptcy.
The company made the announcement in a press release that included a list of the locations that will be shuttered for good. The closures are scheduled to be completed by April.
Kohl’s has faced significant challenges in recent months during which it has seen leadership changes amid dismal earnings reports and economic headwinds.
“We always take these decisions very seriously,” Kohl’s outgoing CEO Tom Kingsbury said in a statement.
“As we continue to build on our long-term growth strategy, it is important that we also take difficult but necessary actions to support the health and future of our business for our customers and our teams.”
Kohl’s said that the affected employees “have been informed” and were “offered a competitive severance package or the ability to apply to other open roles at Kohl’s.”
It’s unclear how many employees were affected. The Post has sought comment from Kohl’s.
Kohl’s, which opens and operates more than 1,100 stores across the country, has seen declining sales for 11 consecutive quarters.
In the third quarter, the Wisconsin-based retailer reported a same-store sales decline of 9.3%. The retailer also lowered its annual forecast for the third quarter in a row.
Kohl’s now expects full-year net sales to decline between 7% and 8%, compared to a previous forecast between a 4% to 6% decline.
Customer visits to Kohl’s plunged 6.2% on average in the third quarter, compared to a 3.4% fall in the previous two months, according to Placer.ai data.
Fourth quarter sales, which include the holiday period, have yet to be reported.
Since January of last year, Kohl’s shares have plummeted by more than 50%.
The announced closures come just days before Ashley Buchanan, a former Walmart executive who most recently served as CEO of Michaels, takes over for Kingsbury as chief executive officer.
In late November, Kohl’s announced that Kingsbury would step down after less than two years on the job.
Kohl’s struggles are symptomatic of the problems that have been ailing other department stores in recent years.
Macy’s has shuttered a large number of locations while retail giants like J.C. Penney, Neiman Marcus and Sears ended up filing for Chapter 11 bankruptcy protection.
Macy’s announced on Thursday that it was closing 66 stores. Last February, the company said it would shutter 150 stores — around a third of its locations — by the end of 2026.
Department stores are grappling with significant challenges to their business model including the rise of e-commerce as well as shifting consumer preferences, particularly among Gen Z buyers who prioritize experiences such as travel and dining.
Kohl’s and other department store chains have also struggled under the burden of persistently high inflation, which has forced consumers to pay more for essentials — leaving less for discretionary spending.
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