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All of these were factors in the company's decision to file for bankruptcy protection.
The bankruptcy filing had the immediate effect of reassuring suppliers that they would be paid. Early restructuring efforts included closing underperforming stores and canceling the leases for previously closed stores resulting in "annual savings of hundreds of millions of dollars." A new management team of seasoned executives with considerable turnaround and retail experience was installed. Arrangements were made with a credit facility to provide additional liquidity.
Kmart management announced early that it would work on a new marketing strategy that would focus on family values...
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