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CHICAGO -- A judge for the U.S. Bankruptcy Court for the Northern District of Illinois here yesterday rejected a motion by Kmart Corp. to extend the time it has to market and sell a number of leases for stores slated to be closed this year.
According to Dow Jones, Judge Susan Sonderby said she lacked the authority to extend the deadline to dispose of 303 leases to Nov. 25, a date set by Kmart. The Troy, Mich.-based retailer, operating under Chapter 11 protection, had wanted a 270-day extension after its reorganization plan is approved by the court, arguing the leases are in 44 states and in different retail settings and varied real-estate markets, making disposition of them difficult.
Some of Kmart's landlords had objected to the extension, saying they wanted to move faster to lease out vacant space, particularly in malls where a vacant anchor can severely decrease foot traffic.