Monday, May 15, 2006

K's Klosing?

teh
K’s Merchandise Mart is in trouble and might be forced to close if this story is right:
DECATUR - A Monday deadline looms for a committee created to examine the books in the hopes of saving the financially troubled K's Merchandise Mart Inc.

The Decatur-based chain - its Web site lists 17 stores in Illinois, Indiana, Iowa, Missouri and Kentucky - already has sailed close to the edge of bankruptcy. Now its fate rests on whether creditors and a new company effectively running K's can work out a deal that will save it. If not, bankruptcy and shutdown loom.
Will K’s closing -if it closes- make much difference here in Springfield? I’ll admit I rarely go in the place anymore. Part of that is convenience; the far west side stores are just closer to where I live. Still, I’m not sure K’s stands out as a great place to shop anymore. Nothing against them (I even worked at the Springfield K’s store briefly years ago), I just think they won’t be missed all that much with all the other retail opportunities available to shoppers.

4 comments:

Anonymous said...

You don't think K's would even be missed! Aren't you an asshole

Anonymous said...

Oh yee of little faith K's Will do fine the new deal will close the 25th of may and we will come back with new merchandise and offer the best deals as we always have

Anonymous said...

Settlement for K's Merchandise heads to creditors for approval


By JOHN REYNOLDS
STAFF WRITER
Published Saturday, May 27, 2006


An out-of-court settlement that would allow K's Merchandise Mart Inc. to avoid bankruptcy and keep its chain of discount stores open is being sent to some 2,000 creditors for approval.

The Boston-based investment firm that has taken control of K's said in a news release Friday that it negotiated the agreement with an ad-hoc committee of creditors.

"The information is being provided to creditors right now, and the committee hopes and expects that we will achieve approval from the creditors in June," Jay Indyke, a lawyer with a New York firm that is representing the committee, said in the release.

Decatur-based K's Merchandise Mart was created in 1957 and has developed into a chain of 17 discount stores in Illinois, Iowa, Indiana, Kentucky and Missouri. In Springfield, K's has been at 2001 Wabash Ave. for more than 20 years.

A letter to creditors this month indicated Gordon Brothers Retail Partners had taken "effective control" of K's. The investment firm specializes in corporate restructuring and liquidation, and provided a loan that helped the retailer narrowly avoid bankruptcy early this year.

With a settlement "appearing likely," Friday's release said, senior management from K's and Gordon Brothers could focus their efforts on finding opportunities for renewed profitability.

Already under way are plans to improve the breadth and depth of K's merchandise selection. This includes revamping the furniture department to capitalize on current trends and aggressively expanding the jewelry selection, the release said.

"Helping retailers like K's find value in their business is what we do best," said Frank Morton, managing director of Gordon Brothers. "We are enthusiastic about a potential creditor settlement because that means we can deliver on K's current marketing and merchandising plans (to) bring value to their customers and bolster the business."

The management of K's Merchandise had no comment on Friday's announcement.


John Reynolds can be reached at 788-1524 or john.reynolds@sj-r.com.

Anonymous said...

no wonder I can't get a complete dining room set. paid for a dining room table & six chairs 4-15-06 & still do not have a complete set. Talked to a sales rep yesterday & of course now the set is discountinued. what's next for me ? got screwed & didn't get a kiss.