The Sears store in the College Square Mall in Morristown will be closing, a spokesperson has confirmed to 10News.
The store will begin liquidating its inventory on October 19, and will close for good in mid-January.
Around 70 employees will be affected by the closure, a majority of which are part-time. They will be notified of open positions at other nearby Sears and Kmart stores and will have to apply for those jobs.
The store is closing because the lease is not being renewed. Sears is not commenting or speculating on the reason for not renewing the lease.
Morristown Mayor Danny Thomas says the news was unexpected.
"It was a surprise to us. Also, it's disappointing. Although we have a lot of good news going on in our city with new jobs, it's disappointing to lose 72."
Thomas says he hopes the planned expansion of five area businesses will help offset the job losses.
He says several existing operations are plannings millions of dollars in additional investments.
Those businesses also plan to hire a total of 350 new employees over the next year to year and a half, according to Thomas.
He says he's hopeful shoppers will continue to spend their money with other local retailers that offer similar inventory which would minimally impact the city's sales tax numbers.