Sears to close Hollywood, New York stores

ATLANTA (Reuters) - Retailer Sears Holdings Corp said on Friday that it would close two Sears stores in Hollywood, California, and New York City for business reasons.

The March closure of a Sears store in Hollywood, California, will affect 125 employees, spokeswoman Kimberly Freely said. Less than 50 positions are likely to be affected by the February 29 closing of a store in the Flushing section of New York's Queens borough, she added.

Freely said the stores are being shuttered "for business reasons," and added that the company was hopeful that idled workers would take jobs at other facilities.

Sears Holdings, the Hoffman Estates, Illinois, retailer controlled by hedge fund manager Edward Lampert, this week said it would separate business units and simplify the way they are managed in a bid to improve results and reverse recent profit declines.

The operator of Sears and Kmart stores said it will have five types of business units under a new decentralized structure: operating businesses, support, brands, online and real estate.

Sears Holdings also warned earlier this month that fourth-quarter profit could be less than one-half the amount of a year earlier, adding that holiday sales fell as the weaker U.S. housing market and competition hurt business.

Sears shares were off $4.80, or 4.6 percent, to $100.22 in afternoon trading on Nasdaq.

(Reporting by Karen Jacobs; Editing by Gerald E. McCormick)