Kmart Hits Red Light; Financial Options Under Review
This article was originally published in The Rose Sheet
Executive Summary
Kmart Corporation is reviewing its business plan and liquidity options after announcing Jan. 10 that it would not reach earnings expectations in fiscal 2002 (ending Jan. 30)
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Kmart
Closing of 284 under-performing stores will improve firm's earnings before interest, taxes and depreciation by about $31 mil. annually, Kmart reports in 1March 8 release. Stores, which will remain open until pending approval of plan by Chicago Bankruptcy Court, include 271 Kmart and 12 Supercenter outlets in 40 states and Puerto Rico. Move will enhance Kmart's cash flow by about $550 mil. in 2002 and $45 mil. annually thereafter. Retailer expects to take charge of $1.1 bil.-$1.3 bil., and eliminate 22,000 jobs. Annoucement marks one of first steps taken under reorganization following Chapter 11 filing in January (2"The Rose Sheet" Jan. 21, 2002, p. 5)...
Kmart
Closing of 284 under-performing stores will improve firm's earnings before interest, taxes and depreciation by about $31 mil. annually, Kmart reports in 1March 8 release. Stores, which will remain open until pending approval of plan by Chicago Bankruptcy Court, include 271 Kmart and 12 Supercenter outlets in 40 states and Puerto Rico. Move will enhance Kmart's cash flow by about $550 mil. in 2002 and $45 mil. annually thereafter. Retailer expects to take charge of $1.1 bil.-$1.3 bil., and eliminate 22,000 jobs. Annoucement marks one of first steps taken under reorganization following Chapter 11 filing in January (2"The Rose Sheet" Jan. 21, 2002, p. 5)...
Kmart Reorganization Effort Backed With $2 Bil. Loan
Kmart will finance a "fast-track" reorganization effort under Chapter 11 bankruptcy protection with a $2 bil. financing facility, the Troy, Mich. retailer announced Jan. 22