July 29, 2002-- Home Textiles Today,
Kmart gets extension of exclusivity period
In an effort to buy more time to formulate an effective reorganization plan, Kmart last week had its request approved by the bankruptcy court, effectively extending the period in which the company has the exclusive right to file such a plan to Feb. 28. Had the U.S. Bankruptcy Court for the Northern District of Illinois not approved the request, the retailer would have been forced to file a plan of reorganization by Aug. 7. The court also granted Kmart a number of other orders, such as the assumption of an additional key brand license agreement, the sale of a corporate aircraft and the retention of a mediator to assist in the deposition of personal injury claims against Kmart.
Jacobson begins liquidation process
Closing sales begin last week at Jacobson Stores Inc., which received court approval to begin liquidating its remaining 18 stores. The U.S. Bankruptcy Court for the Eastern District of Michigan, Southern Division, approved two bids, one to purchase the company's merchandise and one to purchase its accounts receivable. Unable to sell the business, the specialty retailer will be liquidating over $100 million of merchandise.
Federated shifts duties of FACS management
Federated Department Stores has shifted the duties among management in its financial, administrative and credit services (FACS) division. James Amann, who has served as chairman of FACS since its inception in 1989, will no longer supervise FACS as of Sept. 1, although he will retain responsibility for financial services functions. He will be focusing in the future on his expanding role as executive vp of strategic initiatives for Federated, as well as overseeing Federated Direct, which encompasses the company's e-commerce and direct mail operations. He reports to James Zimmerman, chairman and ceo, and Terry Lundgren, president and chief operating and merchandising officer. Tom Cole, chairman of Federated Logistics & Operations and the Federated Systems, will assume the responsibility for FACS, reporting to Lundgren, also effective Sept. 1. Amy Hanson, president of FACS, will be responsible for all FACS operations other than financial services and under the new management structure will report to Cole.
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