Bankrupt retailer

Kmart

(KM)

said Friday it was firing 12 executives and reorganizing its corporate structure.

Kmart said it has "eliminated a number of senior level positions" at corporate headquarters in Troy, Mich. The cuts come from logistics, real estate and merchandising. At the same time, Kmart said that it realigned its field organization into two geographic divisions, down from five.

"The new realignment will bring senior management closer to the business, reduce overhead and cut costs," said CEO James Adamson in a statement. "Additionally, it will streamline our field operations and allow for more decision-making to occur closer to the customer at the regional, district and store levels."

Kmart stock closed Friday down a penny at $1.16.

The company filed for Chapter 11 in January and hopes to emerge from bankruptcy in 2003. To get there the company has announced store closings and layoffs. Kmart recently said it may have to

restate its 2001 financials, the result of an accounting inquiry triggered earlier this year when the company received an anonymous letter questioning its accounting practices.