Kmart Holding Corp.'s agreement with the Home Depot, Inc. calls for it to sell up to 24 stores for a maximum purchase price of $365 million. The exact number of stores, locations and total purchase amount will be determined based upon the satisfaction of contingencies within 60 days.

"We will take advantage of opportunities to create value that include the sale of existing stores, or the acquisition of new stores and businesses," says Julian C. Day, president and chief executive of Kmart Holding Corp. "Some who follow Kmart have speculated solely on the real estate value of the company; however, the reality is that we're taking action on many different fronts simultaneously, all with the goal of making Kmart a great retail company once again."

Locally based Kmart emerged from bankruptcy in 2003 with about 1,500 stores--600 less than it had prior to entering bankruptcy protection. The discounter has posted a profit in the two most recent quarters and won praise for its financial turnaround. But sales have continued to drop as it struggles to compete against Wal-Mart and Target nationally and regional competitors like west Michigan-based Meijer's.