Now playing
01:52
Believe it or not, Sears once revolutionized retail
Getty Images
Now playing
02:18
This airplane-shaped bag is selling for more than some actual planes
Now playing
00:54
See Nike's new 'hands-free' shoe
One of many large boxes of returned products that fill the warehouse. The returned products in this box will eventually be sorted and categorized.
John General/CNN
One of many large boxes of returned products that fill the warehouse. The returned products in this box will eventually be sorted and categorized.
Now playing
05:08
Here's where your 'free' online returns actually end up
Shutterstock
Now playing
04:42
Ever receive a package you didn't order? It could be a scam
Orangetheory Fitness
Now playing
02:13
This gym is actually opening studios during the pandemic
Now playing
02:24
How holiday spirit is surging despite the Covid-19 pandemic
NEW YORK, NEW YORK - NOVEMBER 19: A view of the window display as Macy's Herald Square unveils Give, Love, Believe 2020 Holiday Windows on November 19, 2020 in New York City. (Photo by Eugene Gologursky/Getty Images for Macy's)
Eugene Gologursky/Getty Images North America/Getty Images for Macy's
NEW YORK, NEW YORK - NOVEMBER 19: A view of the window display as Macy's Herald Square unveils Give, Love, Believe 2020 Holiday Windows on November 19, 2020 in New York City. (Photo by Eugene Gologursky/Getty Images for Macy's)
Now playing
00:56
Macy's unveils holiday window display with gratitude theme
CNN/Target/Design by John General
Now playing
02:36
It's official: Black Friday is irrelevant
Now playing
02:23
Party City CEO: Consumers still want to celebrate together
NEW YORK, UNITED STATES - 2020/07/08: People wearing face masks shopping inside a retail store in Manhattan as the city enters phase 3 of reopening amid the coronavirus pandemic
As New York City enters phase 3 of reopening retail stores for indoor shopping, restaurants have been postponed for indoor dinning. The U.S. Department of Health recorded a total of 3,219,999 infections, 135,822 death and 1,426,428 recovered since the beginning of the outbreak. (Photo by Braulio Jatar/SOPA Images/LightRocket via Getty Images)
Braulio Jatar/SOPA Images/LightRocket/Getty Images
NEW YORK, UNITED STATES - 2020/07/08: People wearing face masks shopping inside a retail store in Manhattan as the city enters phase 3 of reopening amid the coronavirus pandemic As New York City enters phase 3 of reopening retail stores for indoor shopping, restaurants have been postponed for indoor dinning. The U.S. Department of Health recorded a total of 3,219,999 infections, 135,822 death and 1,426,428 recovered since the beginning of the outbreak. (Photo by Braulio Jatar/SOPA Images/LightRocket via Getty Images)
Now playing
01:38
US retail sales improved in September
thehouseofdrew.com
Now playing
02:01
Justin Bieber's footwear collaboration overwhelms site
Walmart
Now playing
01:01
See what's new inside Walmart stores
3119 E Third Street Dollar General in Dayton, OH on March 12, 2020.
Maddie McGarvey for CNN
3119 E Third Street Dollar General in Dayton, OH on March 12, 2020.
Now playing
06:07
Dollar General's business is booming. It's also vulnerable to crime, police say
Now playing
03:01
How private equity is gutting retail
Now playing
01:55
All retail bankruptcies are not the same. Here's what you need to know
(CNN Business) —  

More than two dozen Sears and Kmart stores are closing, as the company continues to struggle after emerging from bankruptcy.

The parent company of Sears and Kmart, called Transform Co., said Wednesday that it has “faced a number of challenges returning our stores to sustainable levels of productivity. It plans to close five Kmarts and 21 Sears stores across the United States and Puerto Rico.

Liquidation sales will begin in mid-August and the stores will close in late October.

The company blamed “a generally weak retail environment” for the closures. It also attributed some of the company’s problems to its ongoing court battle with Sears Holdings, the still-bankrupt remnant of the company that used to own Sears and Kmart.

“These challenges have unfortunately affected our performance and limited our strategic choices,” Transform Co. added.

Transform Co. warned more store closures could soon be on the horizon.

“Our goal remains to return the company to profitability and preserve as many jobs as possible in the communities we serve,” it said in a statement.

The company said laid-off employees will be offered the same amount of severance that Sears Holdings gave to employees prior to its October 2018 bankruptcy.

Sears is moving forward on a strategy it believes will revitalize its brand. It plans to “accelerate the expansion” of its smaller-formart stores, Sears Home & Life. They are around 10,000 to 15,000 square feet, rather than the 160,000-square-foot older stores. They don’t sell apparel and instead focus on home goods, including appliances and mattresses.

Transform Co. also plans to add the remaining Sears Hometown and Outlet stores to its portfolio once it completes the purchase of the chain. These stores sell tools, outdoor goods and appliances. Roughly 650 Sears Hometown and Outlet stores remain open.

Sears emerged from bankruptcy in February. A bankruptcy court approved the sale of most of the retailer’s assets to a hedge fund controlled by Eddie Lampert, the company’s chairman, for $5.2 billion. Following the closures, Sears and Kmart will have about 400 remaining stores.

Here’s the full list of Sears and Kmart closures:

Alabama
Sears: 2500 Riverchase Galleria, Birmingham

California
Kmart: 1625 W Redlands Blvd., Redlands

Kmart: 14011 Palm Drive Desert, Hot Springs

Sears: Somersville Road, Antioch

Colorado
Sears: 8501 W Bowles Avenue, Littleton

Florida
Sears: 6200 20th Street, Vero Beach

Sears: 901 US 27 North, Sebring

Georgia
Sears: 3700 Atlanta Hwy Suite 270, Athens

Illinois
Sears: 5 Stratford Square, Bloomingdale

Indiana
Sears: 2300 Southlake Mall, Merrillville

Sears: 6501 Grape Rd US 23, Mishawaka

Maryland
Sears: 6901 Security Sq Blvd, Baltimore

Massachusetts
Kmart: 159 Wilbraham Road, Palmer

Michigan
Sears: 6780 S. Westnedge Avenue, Portage

Sears: 4900 Fashion Square Mall, Saginaw

Missouri
Sears: 18777 E. 39th St South, Independence

Sears: 3 Mid Rivers Mall Drive, St Peters

Sears: 330 Siemers Drive, Cape Girardeau

New York
Kmart: 975 Fairmount Avenue, Jamestown

Ohio
Sears: 600 Richland Mall, Mansfield

Puerto Rico
Kmart: Highway 3 Plaza, Guayama

Texas
Sears: 1101 Melbourne Road, Hurst

Sears: 10000 Emmett F. Lowry Expressway, Texas City

Virginia
Sears: 4812 Valley View Blvd NE, Roanoke

Washington
Sears: 4700 N. Division Street, Spokane

West Virginia
Sears: 100 Huntington Mall Road, Barboursville