Kmart Holding Corporation made an announcement last week stating that the agreement between Kmart and The Home Depot has changed. The original announcement said that Kmart was going to sell 24 of its stores to the home improvement chain for the price of $365 million. However, since that announcement the companies have revised the numbers.
The new agreement states that Kmart will provide the sale of no fewer than 13 stores for $173 million and up to 19 stores for $288.5 million in cash. As an added part of the deal, Kmart has been given the option to sell certain stores, which would increase the minimum number of stores sold to 15 and the minimum cash to be received to $214 million, according to Kmart. The revision of the original plan came about because of some closing conditions that were not being satisfied with respect to some of the stores.
The sale of four stores has already been completed and paid for with $59 million from The Home Depot as of press time. More stores will be put into escrow within the next several days with such funds to be released to Kmart upon the transfer of occupancy to The Home Depot.
Currently, Kmart is holding store-closing sales on those stores sold immediately upon the consummation of the property sales and will receive proceeds from the store inventory and fixtures in addition to the sale proceeds from The Home Depot.