CHICAGO – Kmart Holding Corp. (KMRT) Friday said it will sell as many as 24 stores to Home Depot Inc. (HD) for up to $365 million as part of its strategy to improve profit after emerging from bankruptcy last year.
Shares of Kmart rose nearly 8 percent to a post-bankruptcy high on the news.
The exact number of stores, locations, and total sales price will be based on the satisfaction of certain conditions to occur within the next 60 days, Kmart said.
The discount retailer, which operates more than 1,500 stores, closed 600 of its stores while in bankruptcy between January 2002 and May 2003.
Last week the company said it would focus on improving merchandising and customer service in hopes of winning back shoppers who defected to other retailers.
Home Depot, the largest home-improvement retailer, has more than 1,700 stores.
Shares of Kmart rose $4.33, or 7.9 percent, to $59.19 on the Nasdaq Friday morning, off an earlier high at $59.69.