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24 Apr 2003
The retailer sought Chapter 11 bankruptcy protection from creditors in January of last year after dwindling sales and rising debts forced it into the red.
Chief executive Julian Day, who will receive a $1m bonus for his part in the restructuring, said the company was 'jubilant' about coming out of bankruptcy.
ESL investments, a hedge fund worth $5bn will become Kmart's largest shareholder with a 49% stake in the company.
But the reorganisation leaves shareholders with nothing, although bondholders and banks will receive new bonds.
But all is not rosy at the discount retailer. Two former Kmart executives were recently charged with a $42m accountancy fraud by the Securities and Exchange Commission.
An independent investigative team which included accountants from Deloitte & Touche was appointed to look into the US discount retailer following concerns about 'unspecified accounting matters' following the bankruptcy.
The company's auditors were PricewaterhouseCoopers.
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Briefings
By looking at the reasons supplier statements became unfashionable, and the reasons why it is different today, this paper delves into the many benefits that can be obtained by automating the process.
Having a real and true view of your organisation’s current financial position, and having the right systems and processes in place, will ensure that you can make strong choices and are ready to capitalise on opportunities
AccountancyAgeInsight is a frequently updated resource centre for finance professionals, offering a free and easy-to-use digital library of briefings, white papers and other information resources. 
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