K-Mart and bankruptcy

**homesteadmamma** · 01-14-2003, 07:43 PM

As found in the Fort Frances Times:
http://www.fftimes.com/index.php3/9/2003-01-14/12739

Bankrupt U.S. retailer Kmart to cut 30,000-35,000 jobs, close 326 stores
January 14, 2003

(AP)

Kmart Corp. will close 326 U.S. stores in dozens of states and cut 30,000 to 35,000 jobs under its plan to emerge from bankruptcy by April 30, chief executive James Adamson said Tuesday.

The Troy, Mich.-based retailer has about 1,830 stores.

The store closings are subject to court approval. Kmart is scheduled to appear in U.S. Bankruptcy Court in Chicago on Jan. 28.

Tuesday’s announcement marks the second round of closings in less than a year. Last March, Kmart closed 283 stores, affecting 22,000 jobs.

The closings, which also include one distribution centre in Texas, are in 44 states and Puerto Rico.

‘‘We’re all upset. I’ve been here since 1998. I helped build this store up,’’ said Sharon Knight, an employee at a Detroit Kmart who learned Tuesday that her store is one of those closing.

Knight, who works behind the jewelry counter, said employees were told the store is planning to close within 60 to 70 days. The Detroit Kmart store slated for closure is one of just two in the city.

Kmart filed for bankruptcy nearly a year ago after a stock dive and disappointing 2001 holiday sales.

The company needs to close stores while under bankruptcy protection to allow it to get out of leases. The stores targeted for closure include those with unprofitable leases, underperforming stores and those where competitive pressure is high.

Ron Hutchison, the company’s chief restructuring officer, said Kmart’s common stock will have no value once Kmart emerges from bankruptcy.

Kmart also said Tuesday its same-store sales for December were down 5.7 per cent from the same period last year.

**heaven** · 01-14-2003, 08:33 PM

I haven't heard if any of ours are closing or not. someone tell me,

none of my are closing, here is a link to the info for the ones that are.
http://www.kmartcorp.com/corp/story/.../pr030114a.stm

**captclearance** · 01-14-2003, 09:34 PM

We had several close near us last year, it should be a lesson to other retailers.... K-mart had the worst service, in every kmart I've ever been in..... It's too bad for the employees and those who invested........

**tunasalad** · 01-14-2003, 09:50 PM

The good news is.....when big joints close they have GREAT sales! My son worked for Mars (the musician's superstore). They clased just before Christmas. The sales were unbelievable! He really stocked up. They sold out all their inventory and the new store that is moving in will bring their own merchandice. Kmart going down is a tragedy only for those who lost their jobs and the fact that it is a part of "Americana" that is now lost forever.

**Karla** · 01-15-2003, 02:07 AM

Heaven, thanks for the link. Its to bad now my "sis" in WA will be looking for a new job in a town with not a lot avail. Its so sad about all the jobs that are being lost or have been lost in the last few years.

**SewCrafty** · 01-15-2003, 08:27 AM

The 2 that are close to me are okay.

**Mom23boys** · 01-18-2003, 12:54 PM

There are 3 closing in surrounding towns. The one we occassionally shop at is closing. SO now I guess I will only be going to Wal-Mart.

**tunasalad** · 01-18-2003, 11:53 PM

Originally posted by tunasalad
The good news is.....when big joints close they have GREAT sales! My son worked for Mars (the musician's superstore). They clased just before Christmas. The sales were unbelievable! He really stocked up. They sold out all their inventory and the new store that is moving in will bring their own merchandice. Kmart going down is a tragedy only for those who lost their jobs and the fact that it is a part of "Americana" that is now lost forever.

More good news. I had a thought as my son just let us know that the store moving in to where he previously worked is BIGGER and BETTER and offered him a job. So.....When KMart moves out....chances are SOMEBODY will move in to fill the void.

**nealy** · 01-19-2003, 12:47 AM

I understand why that store went out of business, every time I went inside one I was worried I would catch something, and we live in a good part of town. It was always dirty, never stocked, and the sales reps were down right rude. Why even make myself go there when I can drive the same distance to a nice clean friendly walmart? Part of me is saddened, I grew up in Hazel park michigan about fifteen minutes from Troy, where the headquarters for Kmart is located, it was a part of the community back then, I wonder when they lost track of their priority for quality service???

Nealy