As Kmart's blue light dim, readers are asked to help
Date Posted: February 15 2002
Kmart Corp.'s suppliers and lenders haven't given up on the bankrupt retailing giant, and Michigan's building trades workers are being asked to help, too.
The troubled Troy-based retailer is down, but not yet out, after it filed for Chapter 11 bankruptcy last month and its corporate leaders started to initiate plans to make the company solvent again.
Kmart Chief Executive Charles Conaway said: "We are committed and determined to complete our reorganization as quickly and smoothly as possible, while taking full advantage of this chance to make a fresh start and reposition Kmart for the future." The nation's second-largest retailer has more than 2,114 stores, including 121 in Michigan. They employ 250,000 nationwide, including more than 10,000 in Michigan.
Michigan's building trades unions have long had a good relationship with Kmart. That's why our readers are being urged to shop at Kmart during the company's time of need.
"Overall, Kmart has been good to building trades unions over the years," said Greater Detroit Building Trades Council Secretary-Treasurer Patrick Devlin. "I can't say that every store they've ever opened or remodeled has gone 100 percent union, but they have a very, very good record of hiring union construction workers. I think it would be a shame to see them go under. Hopefully, we can help them by shopping at their stores."
Kmart has had a difficult time competing in the retail marketplace because of aging stores, unstocked shelves, and a reputation for poor service. But the retailer has obtained a $2 billion line of credit and is expected to close hundreds of under-performing stores. Many analysts say the company has a decent shot of surviving bankruptcy.
With Kmart having such a large impact on the state, radio stations and politicians are getting on the bandwagon to support their stores.
"I contacted a number of our affiliates around the state, and no one had any opposition to urging our membership to support Kmart," said Michigan Building and Construction Trades Council Secretary-Treasurer Tom Boensch. "I think we're all of the opinion that we should buy Michigan, and we should support stores that support us."