Subject:
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Re: K-Mart files for bankruptcy
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Newsgroups:
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lugnet.market.shopping
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Date:
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Tue, 22 Jan 2002 20:50:47 GMT
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Viewed:
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311 times
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In lugnet.market.shopping, Ray Sanders writes:
> My concern is that this will cast a palor over K-Mart in general. Many people do
> not understand that Chapter 11 bankruptcy is reorganization, not the same as
> Chapter 7 liquidation. K-Mart can still compete with WalMart, but they have much
> leg work to do first. K-Mart's idea (a few years back) that they could use a
> standard sized K-Mart to compete in the food market with a WalMart Super-Center
> was ill conceived. They did not have the necessary floor space to do that
> correctly. Now they have settled for a cut back selection of groceries, which
> (assuming that the payments to the supplier resume) might still give them the
> necessary traffic.
No, even if K-Mart executives are upbeat, the rats are already
deserting the ship. Normally, if there's a real chance of turning
it around, the suppliers will continue making deliveries; but K-Mart's
suppliers have begun to stop the chain because they don't think their
credit is any good. That's really and truly mega-bad. Very much so.
If this were happening with suppliers in other areas too, it would be
all over--and it may in fact be happening with them, but there's
enough in the warehouse that they can operate on a cash-and-carry
basis for some time.
I don't see any great bargains coming out of this.
best
LFB
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Message is in Reply To:
 | | Re: K-Mart files for bankruptcy
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| (...) It may have subtle effect, tho more so at K-Marts competitors than at K-Mart itself. Something I've noticed of recent is a habit of some WalMarts to spring a '50% off all clearance toys' sale. They do this at unpredictable times and then end (...) (22 years ago, 22-Jan-02, to lugnet.market.shopping)
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