The Atlanta-based construction, real estate and energy management company says during the two fiscal quarters that ended Oct. 31, Abrams' construction segment's volume of work from Kmart dropped to less than .4% of total revenues, compared to 2% for the previous fiscal year.
The company says it has not earned construction revenue from Kmart since Oct. 31. Additionally, Abrams says its construction division does not have any uncollected Kmart receivables and no outstanding construction contracts from Kmart.
"We have no exposure to Kmart in our construction or energy management segments," Alan R. Abrams, co-chairman, president and CEO, says in the statement. "In our real estate segment, we think we are well positioned, based on Kmart's public statements regarding their criteria for closing stores.
"We believe our stores are well located within their communities and have relatively low occupancy costs, and each store has most recently reported increased annual sales."
Abrams says Kmart "has not informed us of its plans to reject or affirm the leases of our 11 operating Kmart stores, and we cannot know their intentions, so we will continue to closely monitor the situation."
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