The Sears-Kmart deal could cost Sears Holdings Corp. $60 million in relocation costs and termination benefits, according to wire reports last week.
Sears Holdings Corp. reportedly said in a regulatory filing that it expects to spend about $30 million on the relocation of employees. The final charge depends on how many employees accept offers to relocate from Kmart's former headquarters in Troy, MI, to the company's new base in Hoffman Estates, IL.
Sears said it will record a $3 million pretax charge for restructuring costs in the first quarter of fiscal 2005 and that the balance will be recorded over the next several months.
Chantal Todé covers catalog and retail news and BTB marketing for DM News and DM News.com. To keep up with the latest developments in these areas, subscribe to our daily and weekly e-mail newsletters by visiting www.dmnews.com/newsletters