The nation's third-largest discounter left Chapter 11 protection with 600 fewer stores, 67,000 fewer employees and a new team of managers.
The downsized chain will have 1,513 stores -- down from 2,114 -- 167,000 employees and annual sales of $30.76 billion for 2002, down from $36 billion in 2001, and $7.8 billion, or 80 percent, less debt.
The company will issue new stock to finance its battle with the much larger Wal-Mart Stores Inc. and Target Inc. Investor Edward Lampert's ESL Investments Inc. of Greenwich, Conn., will control $2 billion in financing and own 49 percent of the new shares.
The old Kmart stock is worthless.
Troy, Mich.-based Kmart had planned to come out of Chapter 11 proceedings by April 30 but objections from creditors delayed their schedule. Kmart filed the biggest bankruptcy in retailing history on Jan. 22, 2002.
The new Kmart has several strong brands like Martha Stewart Everyday, Joe Boxer and Sesame Street but analysts don't know if that will be enough to attract regular shoppers and avoid the fate of defunct chains like Service Merchandise and Bradlees.
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