Why Kmart bankruptcy?
Kmart is a popular retail chain in the United States. It also has branches in other countries so that people in 2002, questioned the answer to the question, why Kmart bankruptcy file.
1. The first answer to the question, why Kmart file bankruptcy is because of the mismanagement of the chairman and president of Kmart.
The president Mark Schwartz and president, Chuck Conaway has created a crisis in its finances when misled shareholders about the growth of your business. The president and the president has not revealed all the recipes Kmart was winning.
2. The second answer to the question, why Kmart bankruptcy file is because the president and the president stole the most revenue and expenditure on expensive things, such as private jets and yachts.
3. The third answer to the question, why Kmart file bankruptcy is because of various loans that the president, Chuck Conaway has made the company. The company also has a poor verification system.
4. The fourth answer to the question, why file bankruptcy Kmart is because it was an essential step because in 2002 the company was going through a huge business loss. Kmart had to declare Chapter Eleven to save the company.
The shareholders had to force Chuck Conaway to leave the company. A man named Edward Lampert bought most of Kmart bonds after the company declared bankruptcy. He did it for the company, ESL Investments. The company could go out of business problem.
Edward Lampert was able to earn revenues of the company. The company also restructured the whole company and unfortunately thirty-four thousand workers were released from work. In 2004, the new Kmart bought Sears Company and the merger of the entire company became Sears Holdings.
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