wonder if it has anything to do with Kmart selling all that Martha Stewart crap...

fair use...

Link

Moody's Downgrades Kmart's to Junk Status

TROY, Mich. (AP) - Moody's Investors Service downgraded Kmart Corp.'s debt rating Friday to junk status, citing snags in the retailer's turnaround plans and the ongoing national economic slump.

Several of Troy-based Kmart's efforts to return to profitability are having an immediate, negative financial effect, Moody's said in a statement. Those included increasing store payrolls and the launch of BlueLight Always pricing, which offers lowered everyday prices.

"The negative outlook reflects (both) the lack of sufficient evidence to conclude that the company's financial performance has bottomed and the potential for further erosion" in the value of Kmart credit, Moody's said.

Last month, Kmart annnounced a third-quarter loss of $224 million, or 45 cents per share. Excluding a hefty restructuring charge, the nation's No. 3 retailer lost $127 million, or 25 cents per share, in the quarter.

The results beat Wall Street expectations, but Standard & Poor's nevertheless responded by downgrading Kmart's credit rating that day, company spokesman Jack Ferry said.

"Kmart Corp. is disappointed in Moody's decision," Ferry said Friday. "Kmart is undergoing an aggressive, massive cultural and operational transformation that will have long-term benefits, but it is being executed against the backdrop of difficult economic times for this country.

Before Moody's announcement, Kmart shares fell 25 cents to $5.78 in trading on the New York Stock Exchange.

-- Anonymous, December 14, 2001

Answers

hummmmmmmm, moody must be following my trend-setting. I declared them "junk" quite some time ago. ;>)

-- Anonymous, December 14, 2001

Now that's Not A Good Thing.

-- Anonymous, December 14, 2001

Kmart is a classic example of bad management at the highest level. They have been struggling ever since WalMart came into direct competition with them. The management saw the WalMart intrusion into their retail market and did virtually nothing about it. Even now they do not match the WalMart style and efficiency. In every industry there are those who are not capable of dealing with stiff competion due to poor upper management and Kmart is just another example.

-- Anonymous, December 15, 2001

I bought my bucket at Kmart. It's a Rubbermaid Roughneck bucket. Beige in color. I like it.

I had a green one, but can't find it.

-- Anonymous, December 15, 2001