business news in context, analysis with attitude

The Business Journal of Jacksonville reports that “consultants and law firms for Winn-Dixie Stores Inc. are seeking more than $9 million in compensation,” and are petitioning the bankruptcy court overseeing the retailer’s affairs to approve their compensation.

According to the Journal, this is just the beginning. “The filings are the first in a series that will continue each quarter as long as Winn-Dixie remains under the protection of Chapter 11 reorganization,” it reports.

And the Detroit News reports that former directors and officers of Kmart have reached a legal settlement with former employees of the company who lost at least $100 million in retirement savings when the company went bankrupt and was reorganized back in 2002. According to sources familiar with the deal, it will be at 10 cents on the dollar or less… will reimburse workers about $11.5 million, which is covered by a $25 million insurance policy designed to protect executives of the now-defunct company…and will include the fees going to the employees’ lawyers.
KC's View:
There’s probably nothing that can be done about it, but it strikes us as amazing how these companies’ shareholders got screwed, get screwed, and are likely to continue to be screwed.