Kmart Creditors Sue Six Executives, Auditor
The trust representing creditors of Kmart Corp. during its reorganization filed suit against former Chief Executive Charles Conaway and other executives, alleging they contributed to the discounter’s bankruptcy case.
PricewaterhouseCoopers, which previously served as Kmart’s auditor, was also named in the civil suit filed in state court in Pontiac, Mich. The suit alleges breach of contract, breach of fiduciary trust and unjust enrichment.
In addition to Conaway, former Chief Financial Officer John McDonald, former Chief Operating Officer Mark Schwartz and three other executives were named in the suit, the first brought by the trust.
The company’s name was changed to Kmart Holding Corp. when it emerged from bankruptcy protection in May.