"Store-level employees who spoke to Business Insider said many of the remaining 941 Kmart stores now appear to be in the midst of liquidation. Stores are being entered into numbered phases — such as Phase 1 and Phase 2 — employees said. The company has told employees that the phases are part of a "P2P" or "path to profitability" strategy to make stores more profitable. But employees say it's a liquidation plan, with each phase triggering different cost-cutting measures such as layoffs and labor-hour reductions."
http://finance.yahoo.com/news/kmart-workers-believe-stores-going-162400821.html