Comment
Author: Admin | 2025-04-28
Deliberately withheld through Project SID.” SID is the acronym for slow-it-down, referring to the plan that Kmart unilaterally implemented to extend the terms of payment to Kmart’s suppliers.Court papers also noted that on the eve of the bankruptcy filing, on Jan. 15, 2002, McDonald received a $1.75 million cash payment from Kmart, which “supplemented a similar $750,000 payment McDonald had received on Dec. 3, 2001.” Conaway was “receiving $20 million in compensation from Kmart for 20 months service,” the court papers said.The discounter listed total liabilities of $10.3 billion and assets of $16.3 billion, according to the Chapter 11 petition filed in a bankruptcy court in Chicago. Before joining Kmart, Conaway was president and chief operating officer at CVS Corp., overseeing the drugstore chain’s merchandising, advertising, store operations, logistics and e-commerce. He previously had been the company’s executive vice president and cfo, while also serving as executive vice president and cfo of Melville Corp., CVS’ former parent company. In these roles, Conaway was credited as one of the architects of the restructuring of Melville from an overdiversified retailing company into one of the nation’s largest drugstore chains. Conaway runs a consulting business in Troy, Mich., and McDonald lives in Wheeling, W.Va., the Detroit Free Press reported. In May 2000, at the time of Kmart’s announcement that Conaway would take over, financial analysts applauded the choice, citing his experience at CVS. Several industry experts, however, warned that Conaway would face challenges at Kmart, given his dearth of apparel knowledge and lack of experience in orchestrating turnarounds.Kmart Since 2000 August 2005: SEC files fraud charges against former Kmart Corp. chairman and chief executive officer Charles C. Conaway and ex-chief financial officer John McDonald. March 2005: Shareholders approve merger of Kmart and Sears, Roebuck & Co., creating Sears Holdings Corp. March 2005: Kmart Holding posts annual net earnings of $1.11 billion on sales of $19.7 billion. November 2004: Kmart Holding and Sears, Roebuck agree to merge in an $11 billion deal. March 2004: Kmart Holding returns to profitability with fourth-quarter income at $276 million, versus a loss of $1.1 billion in the previous year. Sales fall 25.8 percent to $6.33 billion. November 2003: Federal prosecutors drop their case against two former Kmart vice presidents, Enio Montini Jr. and Joseph Hofmeister, who were indicted on securities fraud charges, conspiracy and making false statements to the SEC. Both left Kmart in May 2002 as part
Add Comment