Abstract

The case explores the events that led Kmart, a US-based retailing company that was an integral part of the country’s corporate history, to bankruptcy in 2002. The case explains how the company, which was struggling with various problems on the operational front, was pushed into bankruptcy by the various unethical and illegal practices resorted to by its executives including former Chairman Conaway and former President Schwartz. The case also takes a brief look at Kmart’s reorganization plans and its efforts to emerge from bankruptcy during 2002-03. Finally, the case discusses Kmart’s future prospects in the light of its changed strategic game plan and the various problems that still persist.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Conflict between economic performance and social/ethical obligations of a company.

Keywords

Kmart, retailing company, US-based retailing company, Chuck Conaway, Mark Schwartz, Conaway’s turnaround plan, Bayliner motor yacht, Anthony D’Onofrio, David Montoya