KMART STOCK UP 15.8% IN WEEK AS EXECS WORK WALL ST., ANALYSTS
NEW YORK — Kmart Corp.’s shares have risen 15.8 percent this week as senior executives met with Wall Street analysts here and in Troy, Mich., in an attempt to boost the stock.
In heavy New York Stock Exchange trading, Kmart shares closed Thursday at 9 1/2, up 5/8. Kmart closed at 8 on Monday. In the last two trading days, 20.9 million Kmart shares have traded. The average two-day trading level is 7.6 million.
At the same time, analysts at vulture funds — businesses that invest in the securities and receivables of distressed companies — reported the market for Kmart receivables had dried up in the past week.
Kmart, which has been struggling with red ink and eroding market share, has been battling an uncertain credit community and rumors of a possible Chapter 11 filing.
The second-largest discount chain has denied it intends to file for reorganization and has taken steps recently to revive itself. It continues to close unprofitable stores, work to restructure its bank lines of credit, extended recently to February 1997, and remerchandise its stores.
The talks with analysts are the latest attempt to spread the word about the attempted turnaround. — Fairchild News Service