RETAILING

Kmart Completes Deals With Creditors: The Troy, Mich.-based discount retailer wrapped up talks to change a provision on $550 million in real estate debt that had threatened its financial stability. Holders of the debt gave up the right to demand repayment once Kmart Corp.’s debt rating was downgraded to junk bond status, which occurred in January. In return, Kmart agreed to repay the real estate debt by next year and to pay $60 million in additional annual interest expense. Kmart stock rose 62.5 cents to $7.625 on the New York Stock Exchange on Friday. The company has begun talks with lenders to refinance existing bank lines to avoid a credit crunch next year. Under the just-completed deal, about $3 billion in Kmart debt comes due in February and October 1997.