business news in context, analysis with attitude

Kmart Corp. said yesterday that its plan to close more than 300 stores in coming months will cost the company about $300 million, though it is seen as an absolute necessity if Kmart is to regain profitability after it emerges from bankruptcy protection.

The bankruptcy court approved Kmart’s plan to close the 300 stores yesterday, eliminating some 35,000 jobs or 17 percent of its workforce.

Combined with the 183 stores that Kmart closed last year, the company will have shuttered close to a third of its store base.

In addition, Kmart CEO Julian Day said that the company’s relationship with Martha Stewart continues to be strong, and that Kmart will continue to seek out similar brand relationships in the future.
KC's View: