The Kmart Corporation filed for Chapter 11 bankruptcy protection today after one of its main distributors halted shipments in response to a missed payment. The collapse of the third largest retailer in the U.S.---worth over $17 billion---is the largest bankruptcy in the history of the retail industry. Having negotiated a $2 billion loan from several major banks, Kmart has announced that it will keep its 2,100-plus stores open throughout its financial reorganization and hopes to be able to end its Chapter 11 status as soon as 2003.
See DINA ElBOGHDADY, The Washington Post, January 21, 2002