Detroit Kmart to Become Home Depot

Twenty-four Kmart stores were included in a deal from the consortium, worth about $80 million, said John Simley of Home Depot.His company is expected to take over 15 of the stores, Simley told GlobeSt.com. The other stores will be split up between the other two retailers, he said.

Deighan told GlobeSt.com that Sonderby approved only some of the property turnovers, but is expected to approve the rest soon."I'm very pleased with the results of the property turnovers," Deighan said. "Kmart realized the value it hoped to get."

The Troy-based retailer's reorganization plan was approved April 22 by Sonderby. It's expected that after loan approvals are cemented, Kmart will emerge from bankruptcy on Monday.

Deighan said the 24 stores were the last to be unloaded. Some vacant property, set aside by Kmart for new store sites, still is offered, Deighan said.The company closed 316 stores this year, auctioning off the property or the leases. Simley said Home Depot will take over the leases of its stores, including the one in Detroit.

"Not only are we going to pay the rent, but we have to pay for the right to takeover the lease," Simley said. He added that the company has wanted to enter into Detroit for some time, although previous plans for Home Depot stores have failed.

"There's a great demand for what we do in Detroit," Simley said. "Kmart had great site selection. Now, we're a lot closer to customers in the city, and this store will help alleviate some of the pressure now on stores in the suburbs. Plus, it's an area that has homes that need rebuilding, something we can help with."

The company has 61 stores in Michigan, one of the top 10 locations in the United States, Simley said."This Detroit store is pretty important to us. It's pretty unusual for us to dominate a state but not have a store in the main urban center," Simley said.

He noted that company officials will now go and evaluate the Detroit Kmart and deal with the landlord. The store, located at Meyers and Seven Mile Road, closed after Kmart deemed it underperforming.