Some Sears and Kmart Stores Are Reportedly Falling Apart

Updated: Jul 02, 2017 12:03 PM ET

Some Sears and Kmart stores are in disarray, according to a new report, with problems ranging from a rat infestation to collapsing shelves and unworkable toilets.

Business Insider, citing interviews with half-a-dozen unnamed employees at the stores, reports that maintenance problems at a Sears store in Louisiana resulted in a rat infestation, as well as leaky ceiling. At a store in California, Business Insider reports, the bathroom was not working properly for three weeks.

The report come at a troubling time for Sears Holdings, which owns both Sears and Kmart. Sears locations have continued to close, and the company earlier this year acknowledged "substantial fears" that it could go bankrupt. Sears Canada said last month that it had entered bankruptcy protection.

"We operate more than 1,200 stores. Cherry picking a few outdated and at times inaccurate store anecdotes that are more than a year old is not representative of the whole nor an accurate representation of our company," Sears Holdings said in a statement to FORTUNE. "Meanwhile, last week we unveiled a new store format in Texas, which is proof that we are working to enhance the customer experience and how important that stores are to our transformation."

Sears Holdings has been struggling with revenues for years, having lost over $10 billion since 2010, despite closing hundreds of stores. Last month, the company announced it was shuttering an additional 20 locations, bringing the total closures this year to 260.

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