It wasn't known if any of the stores would eventually be closed by the retailer but the company said it would continue operating as it secured new financing.

Gary Hinkson, Hermitage city manager, said this morning he didn't know how many worked at the Hermitage store.

"One has to wait and see what their reorganization plans are,'' Hinkson said. "Certainly, we would be watching to see what happens to the Hermitage store.

Last year Ames filed for bankruptcy and closed a number of stores, including one at Hermitage Hills Plaza.

Kmart, founded as S.S. Kresge Co., began as a modest five-and-dime store in downtown Detroit more than a century ago. The first Kmart discount store opened in 1962, and by the 1970s the Kmart stores accounted for most of the company's sales.