Kmart cuts late hours

Posted: Thursday, August 01, 2002

TROY, Mich. (AP)-- Kmart Corp. has reduced hours at seven of its 110 supercenters, including those in Alaska. The move ends 24-hour operations at the stores.

The financially struggling retail chain cut the hours at two stores in Detroit and one in Southgate. They now operate 6 a.m.-midnight.

Company spokesman Steve Pagnani says the cutback in hours has occurred since July 8 and covers stores in Alaska and California, as well as Michigan.

''It's absolutely dictated by location,'' Pagnani told The Detroit News for a story Tuesday. ''Their traffic was a little lower at night, so we cut hours to give the stores more time to stock the shelves.''

Kmart has been suffering from slow sales since its Jan. 22 Chapter 11 bankruptcy filing and is looking at a variety of strategies to lower costs. Last week, Kmart Chair James B. Adamson said the company plans to cut jobs at its Troy headquarters and 18 distributions centers within the next two months.

In recent years, Kmart has emphasized the 24-hour superstore concept as a means of keeping pace with 24-hour rivals such as Wal-Mart Stores Inc. and Walker-based Meijer Stores Inc.

In another financial development, Jay Alix & Associates LLC, one of the company's bankruptcy professionals, filed a request to be paid $1.19 million in fees and expenses for work performed in May.

The Southfield-based company, now known as AlixPartners, has provided a variety of bankruptcy services to Kmart during the company's reorganization.

The company also is providing two of its executives to Kmart to serve as the retailer's chief financial officer and treasurer. The U.S. Bankruptcy Court in Chicago reviews such spending requests.

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