Report says grand jury impaneled in probe of Kmart bankruptcy

TROY, Mich. -- The U.S. Attorney's Office has impaneled a federal grand jury in Detroit as part of its probe into bankrupt Kmart Corp., and more than 20 subpoenas have been issued for witnesses, bank records and other documents, according to a published report.

Investigators want to unravel the facts behind the bankruptcy and determine if former chief executive Chuck Conaway, former president Mark Schwartz or other former executives will face charges in connection with Kmart's downfall.

Kmart filed for Chapter 11 bankruptcy protection on Jan. 22 after disappointing holiday sales and a fall in the company's stock price.

Conaway and Schwartz, who left the company earlier this year, have been interviewed by the FBI, unidentified federal sources told The Detroit News in Sunday's editions. The newspaper said a federal grand jury also had been impaneled.

Neither Conaway nor Schwartz could be reached for comment.