New boss for troubled Kmart

Kmart is closing one in six stores

Kmart, the beleaguered US discount retailer, is taking steps towards escaping from its financial crisis.

The firm has appointed Julian Day as chief executive to take over from turnaround guru, James Adamson.

And it said it hoped to have successfully reordered its business so that it could emerge from bankruptcy at the end of April.

Kmart's catalogue of misfortunes includes mounting losses, having its shares thrown off the US stock exchange and admitting a software error had caused it to release erroneous earnings figures.

It is also being investigated by the Federal Bureau of Investigations (FBI) for a loan granted to one of its executives.

Desperate measures

Mr Adamson was appointed last March and was charged with getting the firm back on its feet.

Kmart filed for bankruptcy a year ago under chapter 11 law which allows firms to restructure while being protected from creditors.

Earlier this month, the firm announced it would close more than 300 stores with up to 35,000 job losses.

Mr Adamson will remain through the final stages of Kmart's reorganization as a non-executive chairman.

Mr Day, aged 50, has also been closely involved in plans to save the retailer from liquidation.