The Hoffman Estates, Illinois-based company, struggling to keep up with its rivals, said it will shutter 45 Kmart stores and 18 Sears stores in late January.
Liquidation sales will start as early as next Thursday.
The move comes in addition to the closing of about 250 stores already announced this year.
Meanwhile, Sears launched a “holiday blowout” sale at both chains that began Wednesday and will last until Nov. 25, a day after Black Friday.
Sears has been selling off some its real estate and brands as it tries to raise cash.
Shares of Sears fell nearly 4 percent, or 20 cents, to $5.23 in trading Friday.
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