As part of its restructuring, Kmart has returned to its strategy as a "promotional" high/low retailer focused on exclusive brand offerings. Among those proprietary brands are Martha Stewart Everyday, Joe Boxer, Disney, Sesame Street, Route 66, Jaclyn Smith, Kathy Ireland and Thalia.
Last week, the unsecured creditors of Kmart Corp. nominated Douglas Smith of Chicago-based Huron Consulting Group to chair the Kmart Creditors Trust. Subject to bankruptcy court approval, Smith, a bankruptcy restructuring specialist, would be responsible for pursuing lawsuits that could arise from Kmart’s internal review of its former stewardship and maximizing recovery for the benefit of Kmart’s creditors and shareholders. Smith’s responsibilities would begin once the discounter exits Chapter 11.
After it leaves bankruptcy court, Kmart is set to pay nearly 8,000 employees emergence bonuses. The total cost of the program is expected to exceed $100 million. Kmart has paid out a portion of the payments in two installments during fiscal 2002 as part of its retention plan. Day said in a court affidavit that he would receive an emergence bonus of $1 million.