Hi1281371271

Hi1281371271

On January 23, 2002 it was reported by the Knight Ridder Tribune that Kmart filed the the largest bankruptcy in retail history.
Kmart’s   bankruptcy took no one by surprise. “This is not a problem that began today.   For 10 years Kmart has underperformed it’s competition,” said investment banker and reconstructing expert James Harris, president of Seneca Financial.
Kmart’s holiday and full year sales had fallen 1%.   The company would not meet earnings expectations and was running out of cash to pay vendors.   Kmart was labeled a poor loan risk by debt rating agencies.   After seeing debt at crisis levels Kmart filed Chapter 11 bankruptcy protection.   Just ahead of that filing, the company hired new management team to oversee its reconstruction.
Kmart reported on March 11th 2002, that Chuck Conaway, CEO of the bankrupt retailer, along with Chief Financial Officer John McDonald, as part of a widely expected overhaul of top management. The announcement comes just three days after Kmart announced it would fire 22,000 workers and close almost 300 stores.
James Adamson, who was appointed chairman in January and given the task of overseeing Kmart’s restructuring, is the new CEO.   Conaway, who took the top job in June of 2000, will leave the company and its board of directors.
The company named Julian Day, formerly chief operating officer and executive vice president of department store chain Sears, as president and chief operating officer.   Albert Koch, chairman of turnaround management firm Jay Alix & Associates, was named CFO, while Ted Stenger, also   of Jay Alix, was named treasurer.