American discount retailer Kmart has said it lost $1bn (�700m) in April, which it blamed on a lack of foot traffic in its stores and costs associated with its bankruptcy.

I'm guessing there are some people that think that going bankrupt is the same as going out of business

Eric Beder Retail analyst

Kmart disclosed the loss in a filing with the Securities and Exchange Commission (SEC), in which it also restated its financial results for February and March, resulting in net losses greater than previously reported.

Company management also cautioned the distressed chain's restructuring plan, which so far has involved shuttering 283 stores, may be overly optimistic.

Kmart said it might not meet its July 2003 deadline date for emerging from bankruptcy.

"It's doable, but it's aggressive," said Al Koch, Kmart's chief financial officer, who added it would be several months before management could assess whether next summer's deadline could be met.

'Welcome back'

This latest batch of news may further impact Kmart's ability to attract customers into its stores.

Bargain hunters have been staying away in droves, spooked by the retailer's financial woes.

Others who have ventured to Kmart locations have been disappointed to find sale merchandise as promoted in adverts nowhere to be found.

In an effort to assuage concerned and disgruntled patrons, Kmart plans a "welcome back" sale in early June, which it will announce in letters mailed to shoppers' homes.

It is an effort some feel is doomed to fail.

"Shoppers are voting with their feet, and I'm not sure a coupon is going to bring them back," said retail analyst Eric Beder of Ladenburg Thalmann & Co.

"I'm guessing there are some people that think that going bankrupt is the same as going out of business," he said.

In its filing with the SEC, Kmart noted its same-store sales, a measure of sales performance at stores open at least one year, fell 16% from the same period a year ago.

Meanwhile, at Wal-Mart, Kmart's chief competitor, April sales rose 3%.

Part of Kmart's woes have stemmed from a few reluctant suppliers who fear not getting paid for merchandise they supplied to Kmart's 2,000 outlets, resulting in some spotty deliveries.

But since the firm filed for reorganisation in January under US bankruptcy laws, vendors have generally been supportive, keeping shelves at Kmart nearly fully stocked.