Adamson Steps Down at Kmart

James Adamson, who became ceo of Kmart Corp. (Troy, Mich.) a year ago, just as the troubled discount retailer was headed into bankruptcy, has abruptly left his position.

He will remain board chairman, a position he took over a year ago after six years as a director of the company. He will be succeeded as ceo by Julian Day, currently president and coo, who was hired last year shortly after Adamson became ceo.

While the move appears sudden, and neither the two executives nor the company offered an explanation, a person involved in the discussions told The New York Times that Adamson had been talking about his departure for several weeks with other directors.

Kmart, which filed for bankruptcy protection in January 2002, has closed more than 600 stores in an effort to become profitable, and recently announced a list of more than 300 store closings. But as it enters its second year in bankruptcy, its struggles appear to be continuing, and creditor committees and stakeholders are said to be exerting increasing influence on the company.

Adamson's contract specified that he receive a $4 million bonus if the company emerged from bankruptcy by July 2003. He will receive a smaller amount, the Times reported, although no specifics were available. The payment will not be made until the company emerges.