Reasons Why Kmart Filed Bankruptcy in 2002
Why did Kmart file bankruptcy? Kmart is a popular chain of stores in the United States.
It also has branches in other countries so people in 2002, wondered about the answer to the question, why did Kmart file bankruptcy.
The problem of Kmart was almost the same as to the troubles of Enron because it has experienced several highs and severe low points in their business.
1.
The first answer to the question, why did Kmart file bankruptcy is because of the wrong management of the chairman and the president of Kmart.
The president, Mark Schwartz and the chairman, Chuck Conaway created a crisis in their finances when they fooled the shareholders about the growth of their company.
The chairman and the president also did not disclose all the revenues that Kmart was earning.
2.
The second answer to the question, why did Kmart file bankruptcy is because the chairman and the president stole most of the revenues and spent it on expensive things like private planes and yachts.
3.
The third answer to the question, why did Kmart file bankruptcy is because of the several loans that the chairman, Chuck Conaway made from the company.
He managed to get away with all the money he had used from the company.
The company also had a poor auditing system.
4.
The fourth answer to the question, why did Kmart file bankruptcy is because it was an essential move because in 2002, the company was experiencing a huge business downfall.
Kmart had to declare Chapter eleven to save the company.
The shareholders had to force Chuck Conaway to leave the company.
He was also told to pay all his loans.
He was the one who got most of the blame for the company's downfall.
A man named Edward Lampert bought most of Kmart bonds after the company declared bankruptcy.
He did this for the company, ESL Investments.
The company did manage to get out of the business problem.
The company declared they were out of the chapter 11 in May 2003.
The new Kmart decided to trade at the stock exchange in June of that same year as well.
Edward Lampert was able to make the company gain revenues.
The company also restructured the whole company and unfortunately thirty four thousand workers were released from work.
In 2004, the new Kmart Company purchased Sears and with the merger the whole company became Sears Holdings Corporation.
It also has branches in other countries so people in 2002, wondered about the answer to the question, why did Kmart file bankruptcy.
The problem of Kmart was almost the same as to the troubles of Enron because it has experienced several highs and severe low points in their business.
1.
The first answer to the question, why did Kmart file bankruptcy is because of the wrong management of the chairman and the president of Kmart.
The president, Mark Schwartz and the chairman, Chuck Conaway created a crisis in their finances when they fooled the shareholders about the growth of their company.
The chairman and the president also did not disclose all the revenues that Kmart was earning.
2.
The second answer to the question, why did Kmart file bankruptcy is because the chairman and the president stole most of the revenues and spent it on expensive things like private planes and yachts.
3.
The third answer to the question, why did Kmart file bankruptcy is because of the several loans that the chairman, Chuck Conaway made from the company.
He managed to get away with all the money he had used from the company.
The company also had a poor auditing system.
4.
The fourth answer to the question, why did Kmart file bankruptcy is because it was an essential move because in 2002, the company was experiencing a huge business downfall.
Kmart had to declare Chapter eleven to save the company.
The shareholders had to force Chuck Conaway to leave the company.
He was also told to pay all his loans.
He was the one who got most of the blame for the company's downfall.
A man named Edward Lampert bought most of Kmart bonds after the company declared bankruptcy.
He did this for the company, ESL Investments.
The company did manage to get out of the business problem.
The company declared they were out of the chapter 11 in May 2003.
The new Kmart decided to trade at the stock exchange in June of that same year as well.
Edward Lampert was able to make the company gain revenues.
The company also restructured the whole company and unfortunately thirty four thousand workers were released from work.
In 2004, the new Kmart Company purchased Sears and with the merger the whole company became Sears Holdings Corporation.
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