Home » NEWS » Ex-Kmart to exec ordered to pay $10M

Ex-Kmart to exec ordered to pay $10M

DETROIT — The former head of Kmart Corp. has been ordered to pay more than $10 million for misleading investors about the retailer’s health before it sought bankruptcy court protection in 2002.

U.S. Magistrate Judge Steven Pepe (Payp) released a 70-page decision Thursday, nearly nine months after Charles Conaway was found liable in a civil trial in Michigan.

The case was a fresh look at Conaway’s brief tenure at Kmart and the desperate scramble to keep the company afloat before one of the largest bankruptcy reorganizations in retail history.

The Securities and Exchange Commission had accused Conaway of failing to disclose that Kmart was delaying payments to suppliers to save cash.

Conaway will appeal the jury’s verdict and the financial penalties.

BEFORE YOU GO…

… we’d like to ask for your support. More people are reading the Mississippi Business Journal than ever before, but advertising revenues for all conventional media are falling fast. Unlike many, we do not use a pay wall, because we want to continue providing Mississippi’s most comprehensive business news each and every day. But that takes time, money and hard work. We do it because it is important to us … and equally important to you, if you value the flow of trustworthy news and information which have always kept America strong and free for more than 200 years.

If those who read our content will help fund it, we can continue to bring you the very best in news and information. Please consider joining us as a valued member, or if you prefer, make a one-time contribution.

Click for more info

About Megan Wright

Leave a Reply

Your email address will not be published. Required fields are marked *

*