A temporary restraining order issued by an Illinois bankruptcy court on April 6 has prevented the Penske Auto Centers from closing its remaining 500 facilities at Kmart stores in the U.S. The centers are owned 64 percent by a subsidiary of Penske and 36 percent by Kmart. Last month Penske closed 63 facilities connected with stores Kmart decided to close. Penske said its decision to shut down the remaining 500 facilities resulted from a late March meeting in which Kmart said the facilities “provided no value to its core business.” Penske said Kmart then defaulted on a $5 million payment that was due to the joint operating company on April 1. Penske said it was scheduled for a court appearance on April 8 “to protect its interests.”

Originally posted on Fleet Financials

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