Kmart’s Quarterly Costs Hit $1.05 Billion
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Kmart Corp. spent as much as $1.05 billion in the first quarter as it slashed prices and prepared to close hundreds of stores.
The discount retailer also said for the first time that it is reviewing executive compensation as part of its internal review of former management.
Kmart spent $600 million to $800 million in the quarter for the planned closing of 283 stores, according to a regulatory filing. The retailer is liquidating merchandise and plans to fire about 22,000 workers.
Troy, Mich.-based Kmart, which filed for Chapter 11 in January after sales fell and some suppliers stopped deliveries, began closing the stores Sunday. The store closings represent about 13% of Kmart’s 2,114 locations.
Kmart shares rose 5 cents to $1.11 on the NYSE.
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