Troy, MI, Apr. 2--Kmart Corp. investors, creditors and lenders have elected an entirely new board of directors to lead the discount retailer when it exits bankruptcy protection.
Kmart's president and chief executive, Julian Day, will serve on the board, along with Edward S. Lampert, chairman and chief executive of ESL Investments, a major Kmart investor.
None of the nine current board members will remain on the board, according to the Detroit Free Press and The Oakland Press of Pontiac.
Kmart plans to exit Chapter 11 protection by April 30.
The nominees have been submitted to the U.S. Bankruptcy Court in Chicago. A hearing at the court is scheduled for April 14-15 to approve the company's exit from bankruptcy.
In addition to Lampert, the major investors also nominated William Crowley, president and chief operating officer of ESL Investments; Steven Mnuchin, a retired Goldman Sachs executive; and Thomas Tisch, a managing partner with a private investment firm in New York.
The lenders nominated Ann Reese, a former chief financial officer at ITT Corp.; and Brandon Stranzl, a senior research analyst with Third Avenue Management.
The creditors nominated E. David Coolidge III, chief executive of a private investment firm in Chicago, and William Foss, a self employed attorney in San Francisco.
Kmart filed for bankruptcy on Jan. 22, 2002, following lackluster holiday sales and a drop in its stock price. Existing shareholders have lost about $6.7 billion in equity over the last two years. Kmart's common stock was delisted from the New York Stock Exchange in December.
As part of its proposed reorganization plan, Kmart intends to cancel its current stock and reissue new shares to creditors as payment for their bankruptcy claims.
Kmart has closed 283 stores and plans to shut 326 more by mid April, leaving the retailer with just over 1,500 stores and a combined loss of more than 59,000 employees once the second round of closings is complete.
