US distributor Fleming has filed a $1.4bn claim in Kmart’s bankruptcy case in lieu of profits it believes it would have made from a contract which the grocer subsequently cancelled.

Kmart received court approval to end its 10-year distribution contract with Fleming in February and which was due to run to the end of 2011.

Fleming is seeking payment of lost profits until 2006 when a five-year opt-out clause on the contract could have been initiated.