Kmart Corp. (Business Briefs).
Kmart Corp. is seeking an emergency order from a bankruptcy judge so it can pay companies that supply its stores with alcohol. The nation's third biggest discount retailer filed for federal Chapter 11 bankruptcy protection January 22. That was after disappointing holiday sales and fourth-quarter earnings, downgrades by credit-rating agencies and a stock dive.
Several liquor suppliers have stopped delivering to Kmart, according to recent court filings cited by The Detroit News. As many as 100 alcohol vendors may stop shipments within days, the filing said. As a result, Kmart has asked for an emergency order authorizing it to pay select liquor suppliers. Other vendors, including Sara Lee Corp., Pepsi bottlers and Frito-Lay Inc. say Kmart is dragging its feet on their outstanding bills and have asked the court to clarify when their debts will be settled. Kmart already has received court approval to pay other critical vendors, including its egg and milk suppliers and Handleman Co., its sole music vendor.


