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Kmart is in trouble:
Rumours about possible bankruptcy, but most analysts say this will not happen

The second largest US supermarket retailer is in serious trouble. During the last week or so, its share prices have fallen with almost one third. Its unsecured debt is graded as junk. There have been speculations about a possible bankruptcy, but these have been countered by other analysts who say that Kmart will generate enough sales to survive.

Still, the future looks bleak for the US retailer. Kmart has found it increasingly difficult to compete successfully with Wal-Mart and Target. The restructuring, which has been announced, has been suffering from a lack of resources, press commentators say.