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NEW YORK - Bankrupt discount retailer Kmart Corp. said on Sunday it named president Julian Day to the additional post of CEO with hopes of emerging from Chapter 11 bankruptcy protection around April 30. Kmart also expects its creditors will replace its board of directors, according to an article published Tuesday in the Detroit News.
Julian Day succeeds James Adamson, who will continue to serve as the company's chairman through the final stages of Kmart's reorganization. Adamson, who was hired to save the company from possible liquidation and ensure its survival amid a dire financial situation, will serve as a non-executive chairman.
Day played a key role in Kmart's five-year business plan, approved by the company's board last week, the company said. The company hopes to emerge from bankruptcy on or about April 30.
Adamson, a turnaround specialist, was brought in last March, when he replaced CEO Charles Conaway.
Day, 50, came aboard with Adamson in March, when he was named president and COO. Prior to joining Kmart, Day worked for Sears, Roebuck and Co., where he was CFO and later served as COO.
In other related news, Kmart chief restructuring officer Ron Hutchison told The Detroit News that Kmart expects its creditors to replace its board of directors as part of the plans for the company to emerge from Chapter 11 bankruptcy proceedings.
The plan would be given to a federal bankruptcy judge in Chicago on Friday. The court must approve the change.
Kmart's nine-member board has presided over much of the retailer's financial troubles in past several years and has come under intense criticism.
"That new slate of shareholders will select a new slate of directors upon emergence," Hutchison said. "The company itself isn't looking to replace the board."