Dow Jones reports that Fleming Cos. CFO Mark Shapiro has scoffed at the possibility that the company could be facing bankruptcy in the face of its divorce from Kmart, its largest customer.
"That notion is ludicrous," he said, noting that the company's cash flow is positive and that it has paid down $200 million in debt over the past six months.
"That notion is ludicrous," he said, noting that the company's cash flow is positive and that it has paid down $200 million in debt over the past six months.
- KC's View:
- Maybe Fleming won’t be seeking bankruptcy protection, and maybe the Kmart business was becoming less of a factor as the retailer sold off more and more of its stores. But it seems like Fleming faces the possibility of being a shadow of its former self…which will create real issues about whether or not it can service its independent and regional chain customers with the alacrity and innovation that they deserve.
