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.

[Lazamataz]

Wow! I guess Rosie O'Donnel is radioactive from now on. No one will touch her. The boycott plus other mismanagement mistakes brought the Blue Light Special to its knees.

[modern_orthodox]

one too many blue light specials?

[Dog Gone]

How long before somebody asks if K-Mart executives were selling their shares while employees held onto their's?

[truthkeeper]

I just heard the same report. The commentators on CNBC are saying KMart is partially blaming the problem on being unable to get "surety bonds," and one added, "This goes back to Enron."
I have no idea what this means, since I am an economic dunce. Maybe some nice smart person will explain it to me.

[Miss Marple]

And, how many employees have all their retirement money in K-Mart stock?

[Illbay]

Am I not correct that Chapter 11 allows the Corporation to reorganize and continue in business?

And also, that this bankruptcy absolutely DWARFS Enron?

[RedBloodedAmerican]

Amazing. The Great Walmart of China eats another one.

[Senator Pardek]

"Pink Sheet Special!"

[RedBloodedAmerican]

Did Kmart contribute to Bush's Presidential bid?

[RedBloodedAmerican]

Sorry to hear it. Hope you find work soon.

[RCW2001]

Press Release

SOURCE: Kmart Corporation

Kmart Secures $2 Billion Financing Package and Files for Chapter 11 Reorganization to Aggressively Address Financial and Operational Challenges

All 2,114 Kmart Stores Open for Business; Credit Cards, Gift Certificates, Store Credits To Be Honored As Usual

$2 Billion DIP Financing Package Arranged by JPMorgan Securities, Inc. and Fleet Securities, Inc.; Includes Vendor Lien for Customary Trade Relationship Vendors; Will Fund Operations, Including Employee Salaries and Benefits, and Post-Petition Vendor Payments During Reorganization Process

Completion of Fast-Track Reorganization Targeted for 2003

"We are determined to complete our reorganization as quickly and smoothly as possible, while taking full advantage of this chance to make a fresh start and reposition Kmart for the future," says Kmart CEO Conaway

TROY, Mich., Jan. 22 /PRNewswire-FirstCall/ -- Kmart Corporation (NYSE: KM - news) announced today that, in order to aggressively address the financial and operational challenges that have hampered its performance, the Company and 37 of its U.S. subsidiaries have filed voluntary petitions for reorganization under chapter 11 of the U.S. Bankruptcy Code. In its filings in the U.S. Bankruptcy Court for the Northern District of Illinois, in Chicago, the Company indicated that it will reorganize on a fast- track basis and has targeted emergence from chapter 11 in 2003.

[TruthShallSetYouFree]

surety bond

A bond in which a surety agrees to assume responsibility for the performance of an obligation of another in the event of a default.

It's like getting your brother-in-law to co-sign for a loan. If you don't pay, he is on the hook for the dough.

[SarahW]

I can't go on!!

[RedBloodedAmerican]

There's hope. America West came out of it, with some help.

[veronica]

They should have kept selling guns.

Revenge of the Red States.

[BluH2o]

The boycott plus other mismanagement mistakes brought the Blue Light Special to its knees.

Tacky stores and not focusing on market niche helped bring about their demise.

[Non-Sequitur]

Somehow, some way, this has to be President Bush's fault, too. Let's crank up another 100 congressional investigations and get to the bottom of it.

[SarahW]

That's Tammy Faye, btw, a self-professed devotee of blue-light specials.