The long-running Kmart distribution center in Fairless Hills is headed for a fire sale, with 147 jobs on the chopping block, according to a Labor Department filing and news reports. The massive facility at 1 Kresge Road, roughly 2.2 million square feet tucked into Bucks County’s industrial corridor, is slated to shed workers the same day its assets change hands, leaving employees and local officials waiting to see who buys in and what comes next.
How the news surfaced
According to the Philadelphia Business Journal, a Labor Department filing shows the 2.2 million square foot warehouse at 1 Kresge Road is lined up for an asset sale tied to 147 job cuts. The Journal reported on July 21, 2026 that the timing in that WARN-style filing connects the layoffs directly to the date the sale closes.
What the state notice shows
The Pennsylvania Department of Labor & Industry lists a notice from Transform Warehouse Operations, LLC for 1 Kresge Road in Fairless Hills that identifies 147 affected employees. The state posting classifies the move as a closure and sets September 16, 2026 as the effective shutdown date.
How this fits a wider pattern
The Fairless Hills shakeup tracks with a broader Sears and Kmart strategy of monetizing real estate and shuffling logistics since the Transform Holdco acquisition. Public records show distribution properties around the country being sold, reworked or leased in recent years. Filings with the U.S. Securities and Exchange Commission outline transactions and financing tied to former Kmart and Sears sites, highlighting how ownership has leaned on asset sales and sale-leaseback deals to reconfigure the footprint.
Support and next steps for workers
Workers caught in the closure are covered under WARN notice rules and may qualify for unemployment benefits and rapid-response reemployment services, according to the Pennsylvania Department of Labor & Industry listing. Local PA CareerLink offices and the agency’s dislocated worker programs are positioned to walk people through benefits, training options and job-search help while the sale and shutdown move ahead.
What might come after the sale
For now, the future of the 2.2 million square foot building is a question mark. Across the country, former Kmart and other big-box locations have been carved up, flipped to new owners or turned into fresh retail or industrial projects. Hoodline has previously reported on former Kmart properties finding new buyers and new uses, a path the Fairless Hills site could follow depending on who steps in and what local approvals allow.
