Sears to close three Iowa Kmart stores; Iowa City store not affected

Sears said Wednesday it would close 109 Kmart stores and 41 Sears stores by April.

In Iowa, only three stores will be affected - Kmarts in Dubuque, Sioux City and Waterloo.

Sears's poor holiday season sales illustrate the depth of the company's problems. Sales at Sears and Kmart stores open more than a year declined 12 to 13 percent. That performance comes in a holiday shopping season in which the retail industry is generally expected to have fared well, with a forecast from the National Retail Federation predicting 3.6 percent sales growth.

Sears is not alone among its traditional retailing peers in delivering weak sales during this crucial period. Macy's said this week that its comparable sales dipped 2.7 percent in November and December, while Kohl's reported a decline of 2.1 percent on that measure.

Sears also said Thursday that it has secured a $500 million real-estate-backed loan.

'We are committed to improving short-term operating performance in order to achieve our long-term transformation,” said Edward S. Lampert, chief executive of Sears Holdings.