Bankruptcy of the Kmart Corporation free essay sample

An analysis of the reasons behind the companys move to file for Chapter 11 bankruptcy protection. This paper presents an analysis of the corporations financial records in an effort to find out why the company chose to file for bankruptcy. It conducts a financial analysis comparison of Wal-Mart, Target and Kmart. Suggestions are made as to what Kmart can do to regain their status in the market. Kmart is a discount retailer with over 2,000 stores worldwide and at one time the chain was the leading discount retailer. Much of Kmarts troubles were made evident in November of last year when the company released its SEC quarterly report. The company cited an operating loss of $76 million compared at only $28 million for the same period the prior year. Kmarts operating losses had jumped from .3% in 2000 to 1% in 2001. In addition to the increase in operating loss there was an increase in the companys selling, general and administrative expenses. We will write a custom essay sample on Bankruptcy of the Kmart Corporation or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page This increase was $145 million for the 39-week period, which ended on October 31, 2001. (Kmart Corp (KM))