Kmart's Conaway, McDonald to Step Down

Kmart(KM Quote - Cramer on KM - Stock Picks) said its CEO and its CFO would be leaving the company just days after announcing it would fire 22,000 of its staff and close hundreds of stores.

The bankrupt discount retailer said it has named its current chairman, James Adamson, to replace Charles Conaway as the company's chief executive. Adamson previously served as president and chief executive officer of Advantica Restaurant Group. Conaway will be leaving both the company and its board of directors.

Kmart also named Albert Koch, chairman of turnaround management firm Jay Alix & Associates, as the new chief financial officer, replacing John McDonald, who is also leaving the company.

The company named Julian Day, formerly chief operating officer of Sears, as president and COO.

In a press release, Kmart said these changes come after a string of painful actions the company has taken in recent weeks, and it expects these changes to help "reinvigorate and refocus the organization."

Shares of Kmart closed up 5 cents to $1.29 Friday.