US grocery distributor Fleming has warned that if it does not secure alternative funding it may cause uncertainty about its ability to do business.

Fleming has just lost a major contract with the bankrupt retailer Kmart and said that besides talking to its financing sources, it would talk to vendors about its short-term “liquidity constraints".

In a statement Fleming said unless alternative financing was found “the company now believes that its 2002 financial statements will likely include a going concern uncertainty".

Fleming is to ask the Securities & Exchange Commission for a 15-day filing extension of a March 28 deadline for the release of its 2002 financial results.