TROUBLES CONTINUE FOR KMART AS COMPS DROP 10.8 PERCENT
Byline: Evan Clark
NEW YORK — Bankrupt Kmart Corp. continued to struggle in February with a 10.8 percent drop in comparable-store sales, according to a Form 8-K filed with the Securities and Exchange Commission Friday.
The firm also disclosed in the filing that its net losses since it filed for bankruptcy in January have exceeded $750 million.
Overall sales for the four weeks ended Feb. 27 performed much the same, dropping 10.1 percent to $2.2 billion from $2.45 billion in the year-ago period ended Feb. 28.
Subtracting $1.81 billion in cost of sales, $533 million in selling, general and administrative expenses, $18 million in restructuring expenses and charges, as well as taxes, Kmart tallied a loss of $174 million for the four weeks.
The Troy, Mich.-based firm also posted results for the nine days between Jan. 22, the day it filed Chapter 11, and Jan. 30, inclusive. Sales for the 1 1/2-week period totaled $631 million and boiled down to a loss of $72 million before interest, charges, impairments and taxes. Net losses totaled $579 million, in large part due to an $815 million noncash charge to provide a valuation allowance on net deferred tax assets.
Comps for these nine days weren’t provided, but same-store sales for the month of January dipped 0.1 percent.
As reported, Kmart in its bankruptcy filing listed total liabilities of $10.3 billion and assets of $16.3 billion.
On March 8, the discount giant said it would close 284 of its 2,114 stores at the cost of 22,000 jobs. A few days later, Charles Conaway resigned from his post as chief executive officer and was succeeded as ceo by James Adamson, who was appointed chairman of the firm in January.