12 Kmart Managers Fired Amid Revamp

Kmart Corp., the largest U.S. retailer to seek Chapter 11 bankruptcy protection, fired 12 senior managers and trimmed the number of divisions to two as part of its bankruptcy restructuring.

The discount retailer previously had five units, including four geographic ones and a division for its chain of warehouse-size stores, spokesman Steve Pagnani said.

The restructuring follows the departure earlier this week of Gregg Treadway, executive vice president of store operations. Treadway had been named to his position in February.

Pagnani said the changes weren’t related to the company’s investigation into prior top management. He declined to say whether any of these people were under review, and said information on their severance payments is confidential.

Shares of Troy, Mich.-based Kmart fell 1 cent to $1.16 on the NYSE.