I heard on the radio this morning they MAY be filing for bankruptcy protection?!?! They said they are the 3rd biggest retail chain. HMMMMM....
Kmart is expected to make a chapter 11 bankruptcy filing as early as Tuesday after its situation with suppliers worsened over the weekend. The company's board reportedly authorized the filing Monday after working to arrange $2 billion of post-petition financing to allow it to keep operating under bankruptcy-court protection. The filing could be the largest U.S. retail bankruptcy on record and comes slightly more than a month after the largest bankruptcy ever, Enron's. On Monday, Kmart's main grocery supplier, Fleming Cos., said it was halting shipments after the company missed a payment. Fleming is trying to collect $78 million worth of goods already shipped but not paid for. Another supplier, Scotts Co., also stopped shipments to Kmart stores. Kmart management has often said the discount chain must restructure its stores, and analysts have predicted it might use the bankruptcy filing to get out of leases on more than 200 of them around the country. The company has seen its financial situation spiral downward after it missed its December sales goals and an analyst raised the prospect of bankruptcy in early January. The events touched off a cycle of downgrades by credit rating agencies and a selloff in its common shares. The shares plunged further Tuesday, recently trading down $1.05, or 60%, at 69 cents each. And I just received a new card!!!!!!!!!!!!
Following their grocery supplier cutting them off after they missed a $78 million payment. http://www.dallasnews.com
-- No. 3 retailer Kmart files for Chapter 11 bankruptcy protection. Watch CNN or log on to http://CNN.com
It's no surprise. Kmart has gone downhill and Wal-Mart and especially Target have gone up. In my area, the KMarts are drug dealer city (literal deals in the aisles) and none of the management even tried to get police to stop it and the shoplifting.
Kmart's filing of Chapter 11 bankruptcy doesn't surprise me. Kmart's service has been declining for the past year or two. They would put items on sale and when I went to purchase them there would be none in stock. Also, customer service was rude and the rainchecks I filled out they would never send back to me so I could pick up the item once it was in stock. Kmart's decline can be attributed to poor management, low employee morale, and a lack of customer service. Dani PS I think this will the first of many big Fortune 500 companies to fall. Unfortunately, unemployment is increasing and profits are decreasing.
Just got this communique from an industry insider: "Thought you might want to know Kmart filed Chapter 11 this morning. Here are the highlights: $2 BILLION in DIP financing from JP Morgan Securities and Fleet Securities subject to court approval. Seeking court approval to IMMEDIATELY terminate leases of approximately 350 stores that are closed or currently subleased to other tenants at rents below Kmart's obligations, resulting in an immediate annual savings of approximately $250 Million. Every store and terms of every lease in the Kmart portfolio will be evaluated by the end of the first quarter of 2002 with the objective of closing unprofitable or under performing stores this year to increase cash flow."
I went to K-Mart for the first time in about 5 years on Saturday. Now I see why they are filing. The store (newly remodeled) was GARBAGE! There was crap EVERYWHERE! I did not get a good feeling when I walked in there. The only reason why I went there was because I had visitors and they insisted on going to K-Mart. I was like, are you sure you don't wanna go to Target (K-mart is closer though...)? They were like, K-Mart is fine (OH YEY!). K-Mart in my area is a sad sad store. The last time I went to K-Mart was in 1997 on Halloween to get a camelflauge (sp?) bandana for my costume. I thought since K-Mart has that hunting dept. that they would have it...and they did. That was the last time I went until Saturday. I'll probably never go back either. I stick to Target (if I'm at home) and Wal*Mart (if I'm at work).
I've 2 Kmarts near me and they both SUCK. My son (3 YO at the time) took a 1 inch gah over his eye one day because he walked into furniture lying in the aisle. They moved the stuff and the very next day I went back and the same junk was in the aisle again! Are my Kmarts the only ones that have about 20 checkouts and regardless of time of day, only 2 or 3 cashiers on???????
I guess I am the only one saddened by this. I do hope that Kmart pulls through. I don't want Wal-Mart to be the only store I have to select from in the area. We have a Kmart in Carbondale, Il and it is really nice. I drive there (13 miles) and there are 4 Wal-Marts in a 20 mile radius. Soon we will only have Wal-Mart to shop from and that is the closest thing to Big Brother. I am cheering for Kmart to pull through! Annie Just trying to keep "THE MAN'S" foot off my neck.
Don't get me wrong - I'm not happy about it. I'd like to have the variety too. I have been complaining to my wife for over a year now that this would happen to them - they just never seemed to get their ducks in a row service wise.
I never shop at Kmart, (the ones where I live are nasty) but I hope they stay in business. They can help keep Target (where I shop) and Wal-mart on their toes. Trevor
sam, Your comment is inappropriate. This is a community board and we do not insult in any manner. Pbm will you please remove sam's comment and bar him from this board if he can not behave.
Sam, what proof do you have that "Kmart wants to serve the rednecks, and minorities, but wal-mart has that section cornered"? Your comment comes off as very racist, with the implication that Target is "upscale" because it isn't - in your observation - a place that wants to serve rednecks and minorities. I have generally liked your posts, but you suprised and disappointed me with this one.
