NEW YORK — Kmart Corp. has agreed to share some 66 sets of documentation with bondholders representing $400 million in notes and claims.
This story first appeared in the September 26, 2002 issue of WWD. Subscribe Today.
According to a published report, the documents, which contain detailed information about certain credit agreements and guarantees, will be provided to a group of bondholders on a confidential basis. Also included in the information exchange is paperwork regarding transfers of intellectual property. The four bondholders requesting the information in a bankruptcy filing last month — Appaloosa Management, Merced Partners, Tamarack International and Third Avenue Fund — are also seeking information regarding why the Kmart symbol, valued at more than $4 billion in 1991, was transferred to Kmart of Michigan for $10 in October 2001. The bondholders and Kmart are still bickering over procedures and scope regarding the depositions of Kmart officials.
Earlier this week, the bankruptcy court approved bids from Kohl’s and Burlington Coat Factory for 11 former Kmart sites. Kohl’s will be taking over six store leases: one each in Livonia and Marquette, Michigan; Folsom and Rancho San Diego, Cal.; Simpsonville, S.C., and Birmingham, Ala. Burlington will take over five — two in Austin, Tx., and one each in Glen Oaks, N.Y., Orlando, Fla., and Lexington, Ky.
The bankruptcy court also gave the nod to Kmart’s request to enter into a four-year trademark license agreement with T Enterprises, which allows Kmart to manufacture and market women’s apparel and accessories under the Thalia name.
Since its bankruptcy filing last January, Kmart increasingly has focused on urban customers. The retailer said in court papers that the Thalia brand represents an opportunity to strengthen its business among Hispanics, a demographic group that it said accounts for more than 17 percent of its sales.