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Kmart Bankruptcy

Kmart Bankruptcy

Struggling discounter Kmart ended speculation, and filed for bankruptcy protection. The second-largest discounter in the United States filed for Chapter 11 bankruptcy protection, ending speculation about the company's financial health. Kmart's filing, the biggest retail market ever bankruptcy in the United States, was widely expected, but representatives of the company had for several weeks, declined comment.

The filing came one day after Fleming Companies Inc., Kmart's largest food distributor, stopped shipments to Kmart the retailer for its regular weekly payments to make. (Up from 0.87 to 0.22, Research, Estimates WMT) can move, the No. 1 discounter in Fleming's the last straw for Kmart, which for months with sluggish sales and tough competition from Wal-Mart Stores Inc. has been fought terms of annual revenue.

The credit rating agencies had downgraded Kmart, the stock plunged and the company was removed from benchmark Standard & Poor's index of 500 leading stocks. Kmart's bankruptcy, with billions in assets, the largest ever for a U.S. distributor, according Bankruptcydata.com. Federated Department Stores Inc. (FD: up 0.52 to 0.03, Research, Estimates), which was filed in January 1990, with 9 billion in assets second. Montgomery Ward Holding Corp., filed in July 1997, with 9 billion third.

Kmart, which has more than billion in annual revenue, said it had secured debt financing of its billion with 6 billion in debt and is expected to emerge from bankruptcy in about a year. A company in Chapter 11 is to be protected from creditors while it reorganizes and attempts to draw up a plan to pay its debts. Kmart said all of its 2114 shops were open for business and store any credit cards, vouchers and credit notes would be honored as usual. He also said his pension and savings plans are independent of the firm and should be administered as usual.

Other useful information on the Kmart bankruptcy, you can visit the National Debt Relief Program .

Source: National Debt Relief Initiative .

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