Kmart Denies Rumor Of Chapter 11

Speculation that Kmart Corp. might file for protection from its creditors under Chapter 11 of the U.S. Bankruptcy Code is inaccurate and misleading, the company said Monday.

“We want to reassure the vendor community and the financial community that the company is solid,” spokeswoman Mary Lorencz said after the discount retailer issued a press release in response to a Wall Street Journal story Monday on the speculation.

The company issued a similar statement Friday evening at the request of the New York Stock Exchange after Kmart shares fell 75 cents, to $11.37-1/2, on huge volume of 10.2 million shares. On Monday, the stock was down another 87.5 cents a share at $10.50.