TROY, Mich., May 6, 2003
Kmart Comes Out Of Bankruptcy
Company Had Been Under Chapter 11 Protection For 15 Months
-
(AP)
-
Interactive On The Job Explore America's labor economy, track recent major layoffs and meet key economic players.
-
Interactive ImClone Scandal: Martha's Mess Who's who in the ImClone scandal and how domestic diva Martha Stewart landed in hot water.
The Troy-based retailer has new leadership since filing for protection from its creditors in early 2002. It also has a $2 billion loan to compete against bigger retailers like Wal-Mart and Target.
Company spokesman Jack Ferry confirmed the emergence from bankruptcy had been completed. The company's reorganization plan had been approved by a federal bankruptcy judge April 21.
Investor Edward Lampert's company, ESL Investments, is converting $2 billion in financial claims against Kmart into stock and will own a 49 percent stake in the company.
Kmart entered bankruptcy Jan. 22, 2002, after a poor holiday selling season and a reputation for having cluttered stores and items out of stock. It had 2,114 stores at the time, but now has about 1,500.
The company has rebuilt its corporate structure to streamline purchasing and ensure stores are stocked with popular items. Only 15 employees are now authorized to give final approval to orders, down from 220.
It plans to give store managers more power to decide what items their stores should carry to better meet the wishes of neighborhood shoppers, and also to stress exclusive brands such as Martha Stewart Everyday and Joe Boxer.
İMMIII, CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.
Best-selling author Mitch Albom on his first nonfiction work since "Tuesdays with Morrie."
