International News - Inquiry slams Kmart chiefs for corporate abuse

An inquiry into Kmart has levelled accusations of 'gross dereliction' at former bosses.

The allegations range from abuse of the corporate jet to pocketing almost US$29 million (£17.6 million) in loans just weeks before the company collapsed.

A creditors' trust has been established to direct the legal action against the past executives, including former chief executive Chuck Conaway.

Kmart also said it aims to emerge from Chapter 11 bankruptcy protection at the end of April and has secured US$2 billion (£1.22 billion) to finance its plans. Creditors will receive 40 per cent of what they are owed.

The retailer hopes to increase sales by 19 per cent over a five-year period.