Kmart Board Needs Infusion, Discusses Bankruptcy
The Kmart Corp. says it may need additional financing from banks after months of weak sales, especially over the crucial Christmas shopping season. Kmart’s board of directors met to discuss financial options, possibly bankruptcy, as its stock has lost half its value since the beginning of the year. The nation’s second-largest discount retailer struggles to match the low prices of Wal-Mart Stores Inc., to which, along with Target Corp., it has lost market share.
Moderator Comment: Is Kmart Kput?
Many Wall Street types are talking about Chapter 11 as the only way out for Kmart. Holiday sales were miserable and earnings were in the red. Kmart needs a major cash infusion to stay afloat.
Anyone see a white knight on the horizon or is Kmart going to follow Bradlees, Caldors, etc. into the past tense? [George Anderson – Moderator]