Kmart accounting investigated Kmart accounting investigated Kmart Corp., which filed for bankruptcy protection earlier this week, has begun an investigation after receiving an anonymous letter claiming to be from employees that expressed concern about unspecified accounting matters. The nation's third biggest discount retailer said it had contacted the Securities and Exchange Commission about the letter and its own investigation and is cooperating with the regulatory agency. The disclosure comes amid heightened sensitivity in the wake of the collapse of the energy trader Enron Corp. amid questionable accounting practices. Kmart said the letter was addressed to the SEC, Kmart's auditors, PricewaterhouseCoopers and the company's board of directors. ``The letter has been referred to the audit committee of the board of directors, which promptly engaged outside counsel and accounting consultants to conduct an independent investigation,'' the company said in a news release. After receiving the letter, Kmart said it contacted the SEC and notified it about its own investigation. Kmart said the SEC has authorized a private investigation and Kmart plans to fully cooperate with it. An SEC spokesman said the agency had no immediate comment on the matter. PricewaterhouseCoopers spokesman David Nestor confirmed the company also received a copy of the letter. He said the auditor was cooperating with Kmart and its outside council in the investigation. Troy-based Kmart filed Tuesday for Chapter 11, a move that came after lower-than-expected holiday sales and fourth-quarter earnings, downgrades by credit-rating agencies and a drop in stock prices. Analyst Jeff Stinson with Midwest Research said it makes sense Kmart and the SEC would be attentive to the claims raised in the letter, given the current publicity surrounding Enron's failure. ``This is something that if they go through and they don't find anything it will really reassure people,'' Stinson said. "Right now, after declaring Chapter 11 bankruptcy, it's going to take a lot of time to rebuild confidence." Last week, Kmart's board fired the company's president, Mark Schwartz, and hired turnaround specialist James Adamson as chairman replacing Chuck Conaway, who remains as chief executive. In announcing the bankruptcy filing, Kmart said it will evaluate store performance and lease terms by the end of the first quarter of 2002, and will close unprofitable or underperforming stores. Kmart also said it would reduce staff. In midday trading Friday on the New York Stock Exchange, Kmart shares were down 8 cents a share at 85 cents.