Question & Answer: How should Kmart deal with financial implications of filling for bankruptcy…..

In the event of Kmart going in for a chapter 11, which has provisions for reorganising and recovering a business. Kmart should have a concrete plan in place to chart its way out from its current state to a scenario where it can be profitable again.

As part of the bankruptcy proceedings, the firm would have to submit documents pertaining to assets and liabilities, schedule of current income and expenditures, schedule of contracts and leases. Then there is the issue of taxes and their filings that you would have to take care of as part of the process. The firm is expected to engage attorneys and accountants who would help in navigating the entire process chain at the end of which one can expect Kmart to come back to business at a later stage with a renewed structure and reorganised business plan.