Kmart Corporation (NYSE: KM) today announced that James B. Adamson has been elected non-executive Chairman of the Board of Directors effective immediately, and will serve as the principal liaison between the Board and the Company's senior management as Kmart continues to address its current financial and operational challenges. Charles C. Conaway will continue as Chief Executive Officer of the Company.
Kmart also announced today that effective immediately, Mark S. Schwartz is no longer with the Company. He most recently served as President and Chief Operating Officer and joined the Company in September 2000.
Kmart is continuing to review its current and prospective liquidity position and business plans for the 2002 and 2003 fiscal years. The company is also continuing discussions with its lenders regarding existing and possible supplemental financing facilities.
"We appreciate the loyalty Kmart has received from our customers and the continuing support shown by many of our vendors and other business partners," Conaway said.
Adamson, 53, has been a member of the Kmart Board since 1996, serving on the Board's Audit and Finance Committees.
"Along with the other Kmart Directors, I am pleased that Jim Adamson has agreed to provide his counsel and unique perspective at this critical time," Conaway continued. "His extensive experience in retail and in managing change at companies undergoing massive transformation is a resource that we believe will be invaluable to our senior management team. We are looking forward to working closely with him."
Adamson is the former Chairman, President and Chief Executive Officer of Advantica Restaurant Group, Inc., one of the largest restaurant companies in the United States. Advantica owns and operates approximately 2,400 moderately priced restaurants in the mid-scale dining segment, including the Denny's, CoCo's, and Carrow's brands.
He joined Advantica in 1995 as President and CEO from Burger King Corporation where he had served as CEO from 1993 to 1995. He previously served as Executive Vice President, Marketing, of Revco Inc.; as a senior executive at Target Corporation.
"It has been my privilege to serve on the Kmart Board since 1996, and during that time I have developed high regard for the Company's loyal and hard-working people, who remain among its most valuable assets," Adamson said. "I am looking forward to working with them, and contributing what I have learned through my past experiences, as we take steps to address the Company's current financial and operational issues."
Cautionary Statement Regarding Forward-looking Information
Statements made by the Company related to future performance are forward- looking statements and are subject to risks and uncertainties that are set forth in the Company's filings with the Securities and Exchange Commission, which are incorporated herein by reference. Actual results may materially differ from anticipated results described in such statements. Statements made by the Company from time to time, including those contained herein, speak only as of the date made and the Company does not undertake to update such statements.
Kmart Corporation is a near-$40 billion company that serves America with more than 2,100 Kmart and Kmart Supercenter retail outlets and through its e- commerce shopping site http://www.bluelight.com/ . More information about Kmart sales is available by calling 248-614-0480 and general information is available at http://www.bluelight.com/ under the "About Kmart" section.
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SOURCE: Kmart Corporation
Contact: Lori McTavish or Jack Ferry of Kmart Corporation,