Kmart's Troubles Continue

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Kmart's Troubles Continue

08/13/2002
TROY, Mich. -- The U.S. Attorney's Office has impaneled a federal grand jury in Detroit and more than 20 subpoenas have been issued for witnesses as part of a probe into bankrupt Kmart Corp., the Detroit News reported.

The newspaper said federal investigators are zeroing in on the personal finances and compensation deals struck between the retail giant and former executives such as Chairman Charles Conaway and President Mark Schwartz in the months leading up to the company's bankruptcy filing in January.

Investigations on several fronts are seeking to unravel the facts behind the huge retail bankruptcy and to determine if Conaway, Schwartz or others will face charges in connection with the company's meltdown. Both Conaway and Schwartz have already been interviewed by the FBI, the report said, citing federal sources. It did not say if any Kmart officials were facing jail time.