Kmart reorganizes: closes 284 stores nationwide

| Friday, March 08, 2002

On Mar. 8, Kmart Corp. said it would close 13 percent of its stores and cut about 9 percent of its work force as part of its reorganization under bankruptcy protection, resulting in a charge of $1.1 billion to $1.3 billion.

In a released statement, Kmart announced the closing of 284 of the company's 2,114 stores, reducing its 250,000-person work force by 22,000. The action requires bankruptcy court approval.

Since trucks move nearly all the merchandise transported to Kmart's 2,100 stores, the closings will affect hundreds of small-business truckers who deliver Kmart goods.

The stores to be closed include 271 Kmart discount stores and 12 Kmart Supercenters in 40 states, and one Kmart store in Puerto Rico.

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