Kmart Chapter 11 Bankruptcy Essay
The Kmart Corporation which is known for their blue light special, is also known for it’s collapsed corporation. In 2002 Kmart Corporation was the United States second largest discount retailer. Kmart was widely known for their "blue light specials" campaign which alerted customers of special deals located under designated blue light areas inside their stores. However, in January 22, 2002 Kmart Corps revealed the corporation had filed for chapter 11 bankruptcy protection. Suspected speculation seemed to be no big surprise of the Corporations financial rendering. Many Corporations can fail due to poor management and the inability to adapt into the ever changing market place. Kmart’s decent into bankruptcy evolved into a downward spiral
due to the bad decision making contributed and allowed by poor corporate management.
The lauch of the Kmart Coportation began in 1897. In 1897 a five and ten store by the name of Kmart was founded by Sebastian S. Kresge. Kresge took out a $8,000 loan for start up cost. Then on March 9, 1912 he incorporated S. S. Kresge. “By 1924, he had a personal worth of $5,000,000,000 in 2009 US dollars. Under the leadership of the company’s president, Harry Cunningham, the first Kmart store was opened in 1964. Kmart’s growth was explosive, for example, 271 Kmart stores were opened in 1976”. (http://trace.tennessee.edu/cgi/viewcontent.cgi?article=1021&context=utk_studlawbankruptcy)
Once 2002 rolled around Kmart was the nations seconds largest discount retailer. Kmart’s operation include 2,114 stores along with 136 super stores. The Corporation was located in all the 50 states. Kmart employed 234,000 people with the cost of 5 billion dollars in salaries and benefits.
due to the bad decision making contributed and allowed by poor corporate management.
The lauch of the Kmart Coportation began in 1897. In 1897 a five and ten store by the name of Kmart was founded by Sebastian S. Kresge. Kresge took out a $8,000 loan for start up cost. Then on March 9, 1912 he incorporated S. S. Kresge. “By 1924, he had a personal worth of $5,000,000,000 in 2009 US dollars. Under the leadership of the company’s president, Harry Cunningham, the first Kmart store was opened in 1964. Kmart’s growth was explosive, for example, 271 Kmart stores were opened in 1976”. (http://trace.tennessee.edu/cgi/viewcontent.cgi?article=1021&context=utk_studlawbankruptcy)
Once 2002 rolled around Kmart was the nations seconds largest discount retailer. Kmart’s operation include 2,114 stores along with 136 super stores. The Corporation was located in all the 50 states. Kmart employed 234,000 people with the cost of 5 billion dollars in salaries and benefits.