Los Banos Kmart set to close

A big-box store that has been in Los Banos for a quarter century will close in November, 67 employees will lose their jobs.

Kmart announced Monday its store at 1400 Mercey Springs Road, which opened in 1990, will close in mid-November.

According to an email from Howard Riefs, director of corporate communications, the closure is part of a decision, made by parent company Sears Holdings, to decrease expenses.

“Store closures are part of a series of actions we’re taking to reduce on-going expenses, adjust our asset base, and accelerate the transformation of our business model. These actions will better enable us to focus our investments on serving our customers and members through integrated retail – at the store, online and in the home,” Riefs states in the email.

The employees that are eligible will receive severance pay and have the opportunity to apply for open positions at other Kmart or Sears stores in the region. Most of the employees at the Los Banos Kmart are part time or hourly, Riefs said.

On Aug. 30, Kmart will begin its liquidation sale of the Los Banos store’s merchandise and fixtures.

Customers with layaway contracts at the store have a couple of options, according to Riefs. They can pay off the contract early or transfer their layaway contract to a neighboring store or online. Riefs said a transfer will entail cancelling the contract and re-creating it.

“We are communicating with our layaway customers as they come in weekly to make their payments,” Riefs said. “We truly apologize for any customer inconvenience.”

The loss of jobs from the Kmart closure will come about 14 months after the town saw 80 jobs added by the expansion of Wal-Mart, another big-box store.

It is the second Kmart in Merced County to close its doors this year. Earlier this summer, officials confirmed the Atwater store would close in October and 74 people would be laid off.

Los Banos, like many towns in the Central Valley, suffers from chronic double-digit unemployment. However, the job market appears to be improving, according to statistics from the state Employment Development Department. The Los Banos unemployment rate this past June was 10.7 percent, down from 12.3 percent in June of 2014.

This story was originally published August 10, 2015 at 4:16 PM with the headline "Los Banos Kmart set to close."