TORONTO (AP) _ Kmart Canada Co. will close 10 unprofitable department stores across Canada by the end of March, affecting about 1,200 employees, the company said Monday.

The closures will reduce Kmart Canada's stable of stores to 112.

The Canadian unit of Troy, Mich.-based Kmart employs 12,600 people. It is Canada's third largest discount department store chain after Wal-Mart Canada and Zellers.