Sears to Close Chicago Flagship

Sears Holdings Corp. (Hoffman Estates, Ill.) will close its flagship store in downtown Chicago this spring.

The company said the five-story location on State Street “has lost millions of dollars since opening and we can no longer continue to support the store’s operating losses.”

The store, in a major location in Sears’ home city, re-opened in 2001 after an 18-year absence.

“We don’t make decisions to close stores lightly, and we know just how hard these decisions are on our loyal associates.”  ceo Edward Lampert said in a letter posted on Sears Holdings' website. “But we’ve also carefully studied where other retailers went wrong and how they failed to adapt to changes.”

The company is in the midst of an ongoing effort to cut costs and that includes closing select store in both its Sears and Kmart divisions as well as selling real estate to raise cash. Also on the block, reports The Chicago Tribune, is the chain's automotive unit, more than 700 service centers offering repairs and routine maintenance such as oil changes.