Great Barrington — For cheap, big-box store purchases, south Berkshire-ites may be stuck with online shopping or a schlep to Pittsfield.
The rumors are true: the Kmart in Barrington Plaza on Stockbridge Road is closing for good.
Though a new national anchor store will take its place, right now, that store name is under wraps according to an employee of Barrington Plaza owner Kimco Realty who did not want to be identified.
“Kimco had anticipated Kmart leaving, and worked on a lease a redevelopment strategy in advance,” said the employee.
While talk of the shutdown has swirled around town the last few days, store employees were told not to answer reporters’ questions, according to two employees, and to refer inquiries to corporate headquarters in Illinois.
Calls to media relations at Kmart owner Sears Holding Company were not returned.
The Great Barrington store is one of more than 64 stores nationwide on the chopping block for a fast liquidation, amid what Business Insider said is a cash crisis for both Kmart and Sears.
“In a note published Wednesday [September 14],” said the report, “…analysts downgraded Sears’ liquidity rating, saying the company is bleeding cash and will have to continue to rely on outside funding or the sale of assets, such as real estate, to sustain operations.
“We recognize the risks associated with relying on these sources and continued shareholder support to finance its negative operating cash flow which is estimated by Moody’s to be approximately $1.5 billion this year,” the analysts wrote.
Sears said in August that its cash and equivalents have fallen to $276 million from $1.8 billion one year ago.
Love it or hate it, Kmart is one of the few places nearby to buy cheap things. For basic household goods, it’s the only game in town.
Construct, Inc. employment specialist Phil McTigue told The Edge he had received a call from a liquidator for employees to work on a liquidation process that will start this Thursday (September 22) and run for 11 weeks. The Great Barrington-based nonprofit provides housing for transient or homeless residents and also helps people find jobs and get back on their feet with education and other programs.
Since Kmart Manager Diane Kolarz said she could not comment, it is unclear exactly how many employees will lose their jobs. But the Massachusetts Department of Labor and Workforce says the Great Barrington store has somewhere between 50 and 99 employees.
