l number for companies the size of Kmart. But now Kmart is disposing of them, by filing chapter 11 bankruptcy. Bankruptcy allows Kmart to get out of the leases with the stores that are closing, which should dramatically cut down on Kmarts fixed cost. Lower costs usually show promising signs for the maximization of shareholder wealth. The bankruptcy court also approved a deal that allows Kmart to dispose of over one billion dollars worth of inventory that has been left in the closing stores, yet again another sign of a turn around for Kmart and good news for the shareholders....
