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Jan 15, 2003/ FW/ --- Kmart corporation, which filed for Chapter 11 Bankruptcy last year in January, is expected to complete it's reorganization and emerge from Chapter 11 by the second quarter of this year.

The beleagured retailer targets emergence from Chapter 11 by April 30, 2003.

Kmart has received commitment for 2 billion dollars in exit financing to pay off its creditors as it emerges from chapter 11 bankruptcy this April.

In an interview, Kmart's Chairman and CEO James Adamson quoted, "Now that we have accomplished all that we can through the Chapter 11 process, we look forward to putting the considerable costs and distraction of bankruptcy behind us and focusing our full time and attention on revitalizing Kmart."

Kmart will continue to operate more than 1500, but 326 stores and one distribution center will be closed affecting approximately 37 thousand associates.

The company said in a statement it will close 266 Kmart and Big Kmart stores and 60 Kmart SuperCenters in 44 states and Puerto Rico, as well as one of its 18 distribution centers.

Commenting on the number of job losses, Kmart's President and COO, Julian Day commented, "From a human standpoint, the decision to close stores is a very difficult one. But from a business standpoint, it was a decision that had to be made in order to ensure the future viability of Kmart."

To help ease the transition for affected associates, Kmart will provide a range of benefits including supplemental separation pay and job placement assistance.