Fleming resumes shipping to Kmart
Jan 30, 2002 12:00 PM
After being named a critical vendor to Kmart by a US bankruptcy court and being assured that a claim for $76 million would be paid on January 25, Fleming has resumed shipments to the troubled retailer. Shipments of food and other consumable products are being handled under the terms of an existing agreement between Fleming and Kmart. Debtor-in-possession financing allows Fleming to extend trade credit to Kmart on a weekly payment cycle.In addition to the $76 million, Fleming has an additional claim of approximately $30 million against Kmart. This sum represents merchandise shipped after January 18 and includes unreimbursed transportation costs, unreturned pallets, and vendor rebates.
