Kmart asking for additional time to file annual report

TROY, Mich. - Kmart Corp. is asking for an extension to file its annual report with the Securities and Exchange Commission, saying its new management needs more time to review the company&#39;s accounting practices. <br> <br> Kmart was to have filed the 10K on Tuesday. The bankrupt retailer said it planned to file a form on Wednesday with the SEC to extend the date to May 15. <br> <br> In January, Kmart and the SEC began an investigation after the retailer received an anonymous letter claiming to be from employees about unspecified accounting matters. Kmart said the letter was addressed to the SEC, Kmart&#39;s auditors PricewaterhouseCoopers and Kmart&#39;s board of directors. <br> <br> As a result of the investigation, Kmart is evaluating its accounting methods, and that could result in a restatement of the company&#39;s 2001 quarterly statements, the company said Wednesday. <br> <br> Kmart, which filed for Chapter 11 bankruptcy protection on Jan. 22, said the delay in filing the annual report will give executives time to finish their review. <br> <br> The company said details of the investigation and its accounting methods will be included in the 10K. <br> <br> Kmart also said its operating results for the year ended Jan. 30 are expected to include a loss &#34;significantly higher&#34; than the $244 million loss reported for the previous fiscal year. Those results will be included in the 10K. A Kmart spokesman said further details weren&#39;t available. <br> <br> Kmart filed for bankruptcy following disappointing holiday sales and a stock dive. Since then, Kmart has hired several new executives, including a chief executive, president and chief financial officer. <br> <br> In Wednesday morning trading on the New York Stock Exchange, Kmart shares were down 13 cents to $1.21. <br> <br> <br> ------ <br> <br> On the Net: <br> <br> Kmart Corp., http://www.kmartcorp.com <br> <br>

http://accesswdun.com/article/2002/5/195226