Kmart Teeters on Bankruptcy
CHICAGO -- Kmart Corp. yesterday named a former Denny's executive as its chairman, giving him a key role in the discount retailer's fight to avoid bankruptcy.
Amid growing concerns about a possible bankruptcy and a series of debt downgrades, Kmart also said it was still in talks with lenders and that it was reviewing its liquidity position and business plans for 2002 and 2003.
James Adamson, a member of the Kmart board since 1996, will take the chairmanship and serve as the primary liaison between Kmart's board and its management as the retailer takes stock of its financial position, according to the Associated Press.
Charles Conaway, named chief executive and chairman in spring of 2000, will keep his post as CEO. Kmart also said its president and chief operating officer, Mark Schwartz, left the company.
Analysts have said Kmart, in the midst of a massive $2 billion restructuring, will need to close as many as 200 to 400 of its 2,100 stores in order to survive.
As chairman and CEO of Advantica Restaurant Group Inc., which operates Denny's restaurants, Adamson helped pull the company out of bankruptcy in 1998.