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Fleming Cos. announced this morning that it is talking to its vendors about "near-term liquidity constraints,” and is looking for alternative financing.

Peter Willmott, Fleming's Interim President and CEO, said, "Our management and associates are committed to working closely with our vendors to meet the continuing needs of our mutual retail customers."

The company has been reeling since its supply agreement with Kmart Corp. was cut short, and is under investigation by the US Securities and Exchange Commission (SEC) for possible accounting irregularities.

Fleming also said it would ask for a 15-day delay in filing a report with the SEC, and noted that it probably will be restating historical financial statements.
KC's View:
The way things are going, Fleming ought to be going into bankruptcy protection just about the time that Kmart emerges from it.

We hear a lot from people on this issue -- analysts, employees, and other industry experts. And it’s been some time since anyone made a convincing argument for how and why Fleming will be able to avoid bankruptcy.