Fleming Stops Shipments to Troubled Kmart

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Fleming Stops Shipments to Troubled Kmart (http://biz.yahoo.com/rb/020121/business_food_fleming_kmart_dc_5.html)

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Fleming Stops Shipments to Troubled Kmart (http://biz.yahoo.com/rb/020121/business_food_fleming_kmart_dc_5.html)

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Fleming Resumes Shipments to Kmart


DALLAS (Reuters) - Fleming Cos Inc. (FLM) said on Thursday said it resumed shipments to bankrupt discount chain Kmart Corp. (KM) following a court-approved payment of $76 million to the grocery distributor.

Fleming said on Monday that it ceased shipping goods to Kmart because the retailer missed a weekly payment, leaving Kmart's shelves bare of household goods. Kmart filed a voluntary Chapter 11 bankruptcy petition on Tuesday.

The Troy, Michigan-based retailer will pay Fleming on Friday. On Tuesday, a U.S. bankruptcy court granted Kmart permission to draw on $1.15 billion in financing obtained to fund its reorganization.

``Consequently, we have resumed shipping food and other consumable products to all Kmart stores, effective immediately, under the trade terms of our existing agreement,'' Bill Marquard, executive vice president of Fleming, said in a statement. ``Inventory bound for Kmart's more than 2,100 stores began leaving our warehouses yesterday.''
http://news.moneycentral.msn.com/breaking/breakingnewsarticle.asp?feed=OBR&Date=20020124&ID=1369919

[afang]

Fleming Resumes Shipments to Kmart


DALLAS (Reuters) - Fleming Cos Inc. (FLM) said on Thursday said it resumed shipments to bankrupt discount chain Kmart Corp. (KM) following a court-approved payment of $76 million to the grocery distributor.

Fleming said on Monday that it ceased shipping goods to Kmart because the retailer missed a weekly payment, leaving Kmart's shelves bare of household goods. Kmart filed a voluntary Chapter 11 bankruptcy petition on Tuesday.

The Troy, Michigan-based retailer will pay Fleming on Friday. On Tuesday, a U.S. bankruptcy court granted Kmart permission to draw on $1.15 billion in financing obtained to fund its reorganization.

``Consequently, we have resumed shipping food and other consumable products to all Kmart stores, effective immediately, under the trade terms of our existing agreement,'' Bill Marquard, executive vice president of Fleming, said in a statement. ``Inventory bound for Kmart's more than 2,100 stores began leaving our warehouses yesterday.''
http://news.moneycentral.msn.com/breaking/breakingnewsarticle.asp?feed=OBR&Date=20020124&ID=1369919