Watch: Levin's Deposition from the Litigation of SEC v Conaway (Kmart)

In this 2007 deposition from the litigation of SEC v Conaway, Jerry Levin, former CEO of American Household (Sunbeam), discusses the impact of Kmart's slow pay on his company.

December 4, 2017

Videotaped depositions and other material are the public record from the litigation of SEC v. Conaway. Copies provided at no cost to the U.S. Securities and Exchange Commission.

Case Excerpt:

“With more than adequate inventory on hand for Christmas sales, Kmart's executives appeared willing to take the risk of non-shipment. Sunbeam's CEO Jerry Levin, realizing that Kmart owed $25 million to his company's divisions, threatened to cut off shipments of Coleman goods, a big seller for Kmart in the spring. Moreover, Levin, having just brought Sunbeam out of bankruptcy, recognized the risk that Kmart was running if banks and investors realized that Kmart was in a liquidity crunch and sent a CEO to CEO letter to Conaway to try to get Kmart's attention. Panasonic sent an email demanding a physical pick up of a check covering late payments.”

 From Yale School of Management Case Study #10-027, “Kmart Bankruptcy.”

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