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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Wed, 23 Jan 2002 02:55:49 GMT
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Viewed:
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334 times
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K-Mart's bankruptcy will result in the closing of some 300-500 stores as K-Mart
uses the chapter 11 process to get out of leases for unprofitable store (and for
those stores that have below market lease rates and are also unprofitable sell
the leases to other retailers). For those stores that will close, expect a slow
going out of business sale, but I doubt you will find any real bargains. My
personal experience with these types of sales is that the public tends to buy up
the worthwhile merchandise before it gets to the point that AFOL will consider
it a great deal.
K-Mart has obtained 2 Billion in financing to allow them to continue operations
while in Chapter 11. Most vendors will have placed K-Mart on a COD basis, so
this financing will allow K-Mart to maintain inventory.
I read that bluelight.com may actually survive the Chapter 11 process (assuming
K-Mart does). Apparently the dot com end of K-Mart is a much leaner organization
that has really cleaned up from a lot of mistakes from the past.
The big winners in this will be Wal-mart and Target (to a much smaller extent).
But with more markets having less competition, their will be less incentive for
these to companies to have sales. During the Chapter 11, K-Mart may run more
sales in an effort to bolster cash flow.
I suspect that some entity known as K-Mart will come out of the Chapter 11
process. A much smaller version of today's company. After a few years, the
reorganized K-Mart will tank and go the way of Bradlees and all the other
victims of Walmart. A fitting end for a store even more crappy than Walmart.
Just my 2 cents.
Mark Cornell
David Wertz wrote:
> Hey,
> I guess we saw this coming, and it is no suprise to anyone. Any thoughts on
> what this might do for us AFOL's?
> David
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