Posted on 01/22/2002 5:13:03 AM PST by RCW2001
KMART Corp. Files Chapter 11 Bankruptcy...breaking live on CNBC.
Will post wirecopy as it becomes available.
KMart- the largest retail bankruptcy in history
Watch for news about Halliburton to explode tomorrow.
Source: Jacksonville Business Journal, author Beth Miller
Citing the loss of supplier confidence, intense competition in the discount retail market, unsuccessful marketing efforts and the recession, Troy, Mich.-based Kmart Corp. (NYSE: KM) has filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code, breaking a week-long silence about the company's financial status and future.
The company says it plans to reorganize on a fast-track basis and emerge from Chapter 11 next year.
Kmart has eleven stores in Northeast Florida.
The company says all of its 2,114 stores will remain open and its credit cards, checks, gift certificates and store credits will be honored as usual. It also says its employees are being paid and benefits are expected to continue.
The retailer has secured $2 billion debtor-in-possession financing from Credit Suisse First Boston, Fleet Retail Finance Inc., General Electric Capital Corp. and JPMorgan Chase Bank. Kmart says it expects to be able to access $1.15 billion of the debtor-in-possession financing upon court approval of an interim financing order.
Kmart has named Ronald Hutchison executive vice president and chief restructuring officer effective immediately. Hutchison was most recently chief financial officer of Advantica Restaurant Group, the same company for which Kmart's new chairman, James Adamson, had previously been chairman, president and chief executive.
On Monday, Dallas-based Fleming Co. (NYSE: FLM) said it had stopped all shipments of food and other items to Kmart stores because Kmart did not make its regular weekly payment. In addition, Fleming submitted a notice of reclamation to Kmart with a notice of failure to pay. In addition, lawn and garden products manufacturer Scotts Co. (NYSE: SMG) has postponed shipments until Kmart explains its strategy for financial recovery or files Chapter 11.
Also on Monday, Moody's Investors Service downgraded the long-term ratings of Kmart to Caa3 and left the ratings on review for further possible downgrade, the fourth cut in a month.
Kmart reported a net loss in fiscal year 2001 of $244 million on sales of about $40 billion. The company has about 252,000 employees.
11:03 EST Tuesday
What!!! And Bush did nothing to help the poor stockholders?!!What about the poor employees with 401k losses??!!
Unfortunately only a few of us realize that the true cost of all these cheap imports will be the death of the American middle class and a huge reduction in living standards here in the USA. We will join the third world, a small wealthy ruling elite, and a massive population of poor and uneducated. The chickens are comming home to roost as more and more Americans drop into poverty and good jobs grow harder and harder to find.
Which one is the consumer going to buy?
Like it or not, 99.9/100 will chose the cheaper Chinese goods.
And you are suggesting that mom & pop operations don't sell foreign made goods?
Want to make American goods more price competitive, don't do it by putting up barriers to foreign products, but do it by removing regulations, taxes, and mandates on American companies that drive up the cost of goods.
Can't remember where i saw it, but guess what the #1 cost in manufacturing an American car is... The cost of union health insurance and pensions. Think what you will, but I will stick with my higher quality and better priced (for what you get) Honda and Toyota.
Oh, and don't look inside your computer. Most of it is made in China.
I remember all through the 80's people were crying to high heaven that Japan was going to own us. Well, how did those predictions pan out?
I refuted all of your points in 94. A free market is only free when a common set of laws applies to all. That is not the case, whence the market is not free. It is not a free market when I am told I must pay $5/per hour and my competitor is told he must pay 10 cents/hour. No way, no how is that a free market.
Personally, I can't stand her. Besides the Rosie reason, she's another reason I won't step inside a KMart. Wallyworld or Tarjet for me.
Please, it is good for you to post this. But don't tell all of us who can't get there about all your bargins. Mercy!
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