Kmart holding liquidation for closing Kona store

The Kmart store in Kailua-Kona will close in early August, according to its parent company, Sears Holdings Corp., and began liquidation sales last week.

Kmart spokesman Howard Riefs said the company was making “the difficult but necessary decision” to close the Kmart store at 74-5465 Kamakaeha Ave.

“We have been strategically and aggressively evaluating our store space and productivity, and have accelerated the closing of unprofitable stores as previously announced,” Riefs said Tuesday in an email. “This is not an effort solely aimed at cost savings but is part of a strategy we have been executing as many of our larger stores are too big for our needs. Having fewer stores — and the right format — will help us bring Sears Holdings to a size and place to meet the realities of the changing retail world.”

The number of employees affected by the closure is not publicly available, he said, but those who are eligible will receive severance pay and have the opportunity to apply for open positions at area Sears and Kmart stores.

The last Kmart store on Oahu, a 135,000-square-foot location in Kapolei, closed in October. After the closure of the Kailua-Kona store, the only remaining Kmart in Hawaii will be in Lihue.