KMART Files Chapter 11 Bankruptcy

CNBC Breaking Live

[RCW2001]

KMART Corp. Files Chapter 11 Bankruptcy...breaking live on CNBC.

Will post wirecopy as it becomes available.

[truthkeeper]

Watch, I bet they will blame 9/11 next.

I thought I heard that one over the weekend.

[Rebelbase]

When are Bush and Cheney going to be questioned about this? After all, K-Mart is a very large corporation and there just *has* to be a connection.

[marshmallow]

The general delight which greets this event, simply because Rosie O'Donnell is/was on the payroll, amazes me.

Two big companies like K-Mart and Enron going down the gurgler, in quick succession, is bad news for the American economy. Not to mention the hardship this means for those who are now without a job and the ripple effects which will be felt by many smaller businesses.

This is like celebrating a nuclear srike on New York, simply because Hillary Clinton happened to be among the dead.

[MeekOneGOP]

Guess their "Blue Light" special is now a Red Light?

http://www.drudgereport.com/siren1.gif

[Rebelbase]

"clearance sale on all ammo!! let's go!"

I thought they stopped selling ammo.???

[RedBloodedAmerican]

When you consider the clientele they draw and the way the economy is, I am sure the events of Sept 11th didn't help them. Not the sole reason, but it didn't help, IMO.

[sargon]

I wonder if KMart's betrayal of American gun owners had anything to do with this? I know that many began a boycott KMart after Rosie's tirade(s) and after they caved with respect to their gun/ammo sales.

I can't recall which exact policy they changed in their Sporting Goods department, but it angered gun owners, I know that much...

[flamefront]

Rosie?

Did you notice in the NY Times article:

Oddly, the spectacular failure of the Enron Corporation (news/ quote), already the largest corporate bankruptcy ever, may have had as much to do with Kmart's failure as skittish suppliers and hard- nosed bankers.

Kmart relies on surety bonds, essentially agreements by insurance companies to continue financing in case of a default, to back its workers' compensation program and to cover liabilities arising from its sales of guns and liquor, advisers and executives close to the company said.

Enron depended on such bonds, too, and after it went bankrupt, leaving insurance companies to cover its liabilities, insurers drastically raised prices for surety bonds. In Kmart's case, insurers were requiring cash collateral for the securities.

Did she help it happen?

[Ward Smythe]

As a kid I remember what a treat it was to go to the Kresge store in downtown Bluefield, WV. We'd shop in the city then have lunch at the Kresge counter.

While I have to admit I rarely shop K-Mart, I would hate to see them go. It's a shame that the business started by the same man who started the Kresge Foundation has fallen on such hard times.

The Kresge Foundation has done a lot of good, and has contributed a lot of money to Christian causes, including a lot of college campus buildings. (My alma mater included).

[b4its2late]

Good job Rosie!

[wku man]

Just remember, they don't carry pistol ammo anymore. They knuckled under to that loser, Michael Moore, over the summer and took it off the shelf. I've not stepped into a K-Mart since. Goodbye and good riddance!

Scouts Out! Cavalry Ho!

[TaxPayer2000]

The general delight which greets this event, simply because Rosie O'Donnell is/was on the payroll, amazes me...........

you took the words right off my keyboard, ....

[oyez]

This guy is a big fan

>>http://www.concentric.net/~rodf/mart.htm<<

[elfman2]

"FYI: The majority of the merchandise that Kmart cannot move or has removed from the shelves is at a wearhouse in Hialeah, Florida about ten minutes from where I live."

Normally, does that warehouse sell merchandise like an outlet? Kmart's the equivalent of the big mall down in Key Largo. If it's not there, it means a trip up the 18 mile stretch.

[True Capitalist]

I think it's time for a Congressional investigation of the Kmart collapse!!!

Kmart sold junk...the corporate executives knew they were selling junk yet they acted recklessly in continuing to sell junk in total disregard of their employees well being (BTW Kmart has 300,000 employees; Enron had only 19,000). The true victims of this ponzai scheme, of course, are the low-income individuals who were confused into buying the junk while the company was going down!

Somebody call Joe LIEberman!

[Phantom Lord]

Fingerhut was "mail order for morons." Any idiot who ordered things from them at their way high prices was a moron. Do these people not see what those items cost in retail stores?

Look honey, we can get a crock pot for $700. What a deal!

[Smedley]

Did Kmart contribute to Bush's Presidential bid?

I'm not sure, but I understand they donated Hillary Clinton's entire wardrobe of 350 black pantsuits.

[JoeFromCA]

Here's the KMart spin on surety bonds: Kmart "self-insured" (took on the liability itself without insurance) for some liabilities, including those arising from workers comp and gun sales in its stores. A surety bond is a promise by a third party that an obligation will be paid, like a bond.

With the economic downturn and Enron's demise, losses occurred in the surety bond market, making it difficult or impossible for KMart to buy surety bonds. KMart therefore had to buy expensive insurance to cover these liabilities, reducing its cash flow.

Source: Today's Wall Street Journal

[HogFixer]

Our local financial wiz, said k-mart may have to sell off up to half of their stores.

Serves them right!

[RedBloodedAmerican]

HA! Touche'!