Kmart Corporation (NYSE: KM) today announced that it has reached an agreement to retain DJM Asset Management, LLC, and its marketing partner ChainLinks Retail Advisors, Inc., to assist in the disposition of leases for the 283 Kmart locations in 40 states and Puerto Rico that the Company is in the process of closing. The agreement is subject to the approval of the United States Bankruptcy Court for the Northern District of Illinois. A motion seeking such approval is scheduled to be heard by Chief Judge Susan Pierson Sonderby on April 23, 2002.
Under the agreement, DJM and ChainLinks will assist Kmart's internal real estate staff in identifying retailers, investors and landlords interested in obtaining the leases for the closing stores. The locations to be marketed range in size from 40,300 to 182,714 square feet and are located in free standing, strip and mall locations.
"This disposition represents an unusual opportunity for retailers, investors and landlords to obtain and control large pieces of real estate throughout the country," said John Foster, Kmart's Senior Vice President, Real Estate Management. "We have been advised by DJM and ChainLinks to expect a great deal of interest for both retail and non-retail uses."
As previously announced, Kmart has received court approval to close 283 stores across the country, including 270 Kmart discount stores and 12 Kmart SuperCenter retail outlets in 40 states, and 1 Kmart store in Puerto Rico. The closure of these stores is expected to significantly enhance the Company's operational and financial performance. Store closing sales are underway and will continue, depending on the location, for approximately two to three months.
About DJM Asset Management, LLC
Based in Melville, New York, DJM Asset Management, LLC, assists retailers nationwide with the disposition of surplus real estate and lease mitigation. During 2001, over 28 retailers have retained DJM to dispose of 2200 locations and over 50 million square feet of retail space. DJM has disposed of "big box" locations for several clients including Grand Union locations for C&S Grocers, Levitz, Home Place, Homelife on behalf of Sears, General Cinema on behalf of Harcourt General, Jumbo Sports and Uptons. The DJM website can be accessed at http://www.djmasset.com/ .
About ChainLinks Retail Advisors, Inc.
ChainLinks Retail Advisors, Inc., based in Washington D.C., is the largest retail-only real estate service provider in the United States. In the past two years, ChainLinks Retail Advisors has completed more than 9,000 transactions, totaling more than 70 million square feet and valued at more than $10 billion. The ChainLinks website can be accessed at http://www.chainlinks.com/ .
Kmart Corporation is a $37 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/ .
Safe Harbor Statement
The foregoing, as well as other statements made by Kmart, may contain forward-looking statements that reflect, when made, the Company's current views with respect to current events and financial performance. Such forward looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the Company's operations and business environment which may cause the actual results of the Company to be materially different from any future results, express or implied, by such forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, the following: the ability of the Company to continue as a going concern; the ability of the Company to operate pursuant to the terms of the DIP facility; the Company's ability to obtain court approval with respect to motions in the Chapter 11 proceeding prosecuted by it from time to time; the ability of the Company to develop, prosecute, confirm and consummate one or more plans of reorganization with respect to the Chapter 11 cases; risks associated with third parties seeking and obtaining court approval to terminate or shorten the exclusivity period for the Company to propose and confirm one or more plans of reorganization, for the appointment of a Chapter 11 trustee or to convert the cases to Chapter 7 cases; the ability of the Company to obtain and maintain normal terms with vendors and service providers; the Company's ability to maintain contracts that are critical to its operations; the potential adverse impact of the Chapter 11 cases on the Company's liquidity or results of operations; the ability of the Company to fund and execute its business plan; the ability of the Company to attract, motivate and/or retain key executives and associates; and the ability of the Company to attract and retain customers. Other risk factors are listed from time to time in the Company's SEC reports, including, but not limited to the quarterly report on Form 10-Q for the quarter ended November 27, 2001. Kmart disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Similarly, these and other factors, including the terms of any reorganization plan ultimately confirmed, can affect the value of the Company's various pre-petition liabilities, common stock and/or other equity securities. No assurance can be given as to what values, if any, will be ascribed in the bankruptcy proceedings to each of these constituencies. Accordingly, the Company urges that the appropriate caution be exercised with respect to existing and future investments in any of these liabilities and/or securities.
SOURCE: Kmart Corporation
Contact: Kmart Media Relations, +1-248-463-1021; or Andy Graiser,
+1-631-752-1100, Ext. 229, Jim Avallone, +1-631-752-1100, Ext. 224, Tom
Laczay, +1-631-752-1100, Ext. 225, or Ed Zimmer, +1-631-752-1100, Ext. 222,
all of DJM Asset Management