Fate of local Kmart stores unknown
Advertiser Staff and News Services
While Kmart stores around the country will continue to operate during the retailer's bankruptcy reorganization, the retailer also has said it will look at closing what analysts say could be as many as 700 around the nation.
Jeff Widener • The Honolulu Advertiser
Local retail analysts differ on whether any of Kmart's seven Hawai'i stores would be selected for closure.
The Kmart store in Iwilei is among seven in Hawai‘i and 2,114 nationwide. As the chain considers whether to shutter some stores, a Honolulu retail analyst says all the stores here are too successful to close; others say Iwilei might go on the hit list.
Two analysts figured that all the stores will remain. "Hawai'i's not the problem," said Stephany Sofos of S.L. Sofos & Co. Ltd. "I think all of the stores here are very successful."
But two other local analysts figured that Kmart could get rid of two or three stores — in 'Aiea at Stadium Marketplace, in Kona and possibly in Iwilei or Lihu'e, Kaua'i. Kmart also has stores in Kapolei, Waikele and Kahului, Maui.
The company also is pursuing plans to purchase an 8.5-acre property in Honolulu to build a Kmart supercenter.
As recently as last week, Kmart said those plans were on track. But real estate experts say that project is unlikely now because of difficulty in financing roughly $50 million in estimated purchase and construction costs.
Jeff Arce, chief financial officer for the MacNaughton Group, which is assisting Kmart with the deal, said yesterday that he has had no indication from Kmart that the project will not proceed as planned. Kmart has not yet purchased the land from the Wichman Family Trust.
