K mart Wins Battle With Three D

Three D Departments Inc., operator of bed and bath specialty stores, lost a round Thursday in its 3 1/2-year breach-of-contract lawsuit against K mart Corp.

The U.S. District Court in Chicago granted K mart a summary judgment dismissing claims by Three D that K mart violated a contract in November, 1986, when it closed 30 Designer Depot stores in which Three D operated leased bed and bath departments.

Three D spokesman Frank Kane said the company plans to appeal the court’s decision. K mart officials could not be reached for comment.

Kane said Three D, which operates 33 stores, is asking for unspecified damages in the case.

For the nine months ended April 28, the company reported earnings of $514,000 on sales of $30.9 million, compared with net income of $639,000 on sales of $29.5 million in the year-earlier period.