Lowes has announced that it will be closing a handful of its stores and closing stores in more than a dozen states, according to a letter sent to employees.
The chain has shuttered nearly 5,000 stores, according the letter, which said the closures are related to the recent market collapse.
The company announced the closures Monday, saying it is closing the stores “due to the impact of the recent severe stock market downturn.”
The closures will take effect in the next 30 days, and employees are being offered a severance package, according a statement.
Lowes announced that its online-only stores, which carry a similar inventory and pricing model to stores in stores, will be closed from July 30 through September 30.
Lowes also announced plans to sell its low-cost grocery stores to the grocery chain Kroger.
Low-cost stores have been a hot topic for the stock markets in recent months, with many investors believing that the chain will be forced to cut costs.
But with the stock price of Kroger and other discount retailers dropping, some investors are looking to the retail giant for help.
Lowe also announced that employees will receive a severity package of up to $3,500 per year for the rest of the year, with the company offering an “employee-friendly” package of benefits.