StyleMaster plummets into bankruptcy ; Chief Martha Williams attemps fast-track buy.

Kmart Corp.'s recent bankruptcy has stung one of its plastics molders: StyleMaster Inc. and its charismatic leader Martha Williams, who opened the housewares molder's plant on Chicago's South Side last year.

StyleMaster filed for protection from creditors under Chapter 11 of the U.S. Bankruptcy Code on March 18. Williams, who claims that Kmart owes the company $7 million, is trying to buy the company back through a fast-track sale.

Williams says if the court does not approve a sale by April 5, StyleMaster will shut down its inner-city plant. U.S. Bankruptcy Court Judge Jack Schmetterer was expected to rule on the plan at a hearing on March 22.

During court action that began March 20, StyleMaster lawyers - supported by four creditors - argued in favor of a quick auction of the firm, its facility, and its seven injection presses and other equipment. Raising questions about the plan, and suggesting that a quick sale could be rigged to benefit Williams, were lawyers for two other creditors: custom molders Matrix IV Inc. and Paramount Plastics Inc.

Matrix, a Woodstock, Ill., company that molded parts for StyleMaster, recently had to lay off 103 of its 184 employees, according to Matrix President Ray Wenk Sr. StyleMaster owes Matrix …