Kmart remains under investigation

Kmart, the third largest US discount retailer, has officially emerged from bankruptcy protection with fewer stores, a new management team and $2bn in financing.

The company is the largest US retailer to ever file for bankruptcy.

During its 15 months of bankruptcy protection from creditors, Kmart closed 600, or 30% of its stores, slashed 60,000 jobs and swapped most of its debt for equity.

The company has appointed Edward Lampert, the head of hedge fund ESL Investments which owns half the company, as chairman of its board.

Retail troubles

Kmart said it hopes to turn in a profit next year after reporting a $483m loss for March on Tuesday, its third straight month in the red.

Sales in March at stores open at least a year fell 7.4% compared with the same month in 2002.

But the former number one in the retail sector may never regain its crown.

Rivals Wal-Mart and Target opened hundreds of new stores as the Kmart chain shrank during bankruptcy.