USFreightways Corp. said today it does not expect to be substantially affected by the business woes of one of its customers, discount retailer Kmart Corp. The company said its revenue from Kmart, both direct and indirect, amounts to less than 1% of its revenue.
Both Kmart and related customers are "largely current" on their receivables, so USFreightways said it believes it has no substantial exposure.
Kmart shook up its top management Thursday, saying it continues to review its liquidity and have discussions with lenders amid speculation of a possible Chapter 11 bankruptcy filing and the shuttering of hundreds of stores.
Kmart, the second-largest discount chain after Wal-Mart Stores, has seen its stock lose about two-thirds of its value since January 2. It closed yesterday at $1.54 a share.
The retailer yesterday fired president Mark Schwartz and elected James Adamson non-executive chairman to serve as the principal liaison between the board and senior management. Adamson has a history of turning around ailing retailers, most recently the Denny's restaurant chain.