KMART TO CLOSE STORES IN ILLINOIS, NOT MISSOURI

TROY, Mich. -- Kmart Corp. will close 72 "poorly performing discount stores this year," eliminating about 5,800 jobs as part of its continued restructuring.

Kmart closed 110 stores late last year and early this year. The company also relocated, consolidated or closed 120 stores earlier in 1994. Those changes eliminated about 7,100 jobs.

"No stores in Missouri will be closed," said company representative Michelle Deland from her Troy office.

However, two Illinois stores are scheduled for closure, at Belleville and Harrisburg, added Deland. Other Illinois stores on the closing list include those at Elgin, St. Charles and West Chicago.

Kmart has had nine consecutive quarters of disappointing earnings as it battles intense competition from rivals such as Wal-Mart Stores Inc. and the Target chain of Dayton-Hudson Corp. The company reported a $28 million loss in the first quarter.

Kmart, however, plans to remodel or build 150 stores in 1995, including 22 new Super Kmart Centers and 43 new discount stores.

The company's sales and profits have lagged in recent years partly because its aging stores have been unable to compete with the newer stores of its rivals.

Under pressure from angry stockholders, the board ousted chief executive and President Joseph Antonini in March. It has yet to name a successor.

The closures announced Thursday will start in late August and be completed by the end of the company's fiscal year in January. Hourly workers will receive lump-sum payments of $100 to $1,000, based on years of service, to remain on their jobs until the closures.

Managers will receive severance packages, including one year of salary, a year of medical benefits and six months of career counseling.

Kmart operates nearly 4,000 stores worldwide, including Builders Square and Borders-Waldenbooks outlets. Of those, about 2,200 are domestic Kmart stores and Super Kmart Centers.