Kmart NASCAR Sponsorship

Elwood · February 3, 2002

Kmart says it will evaluate its NASCAR sponsorship

February 1, 2002

TROY, Mich. (AP) -- Kmart Corp. is evaluating its future in NASCAR following its filing for bankruptcy protection, but is committed to sponsorship in three upcoming races.

Kmart said Friday that two cars it sponsors -- the No. 26 Ford driven by Joe Nemechek, and the No. 66 Ford driven by Todd Bodine -- will participate in the season-opening Daytona 500 on Feb. 17 and the North Carolina 400 the following Sunday.

Bodine also will drive in the non-points Bud Shootout at Daytona on Feb. 10.

``We are locked and loaded for these three races,'' said David Karraker, the retailer's director of marketing communications.

But Karraker said the company is offering no forward-looking statements.

In response to Kmart's statement, Haas Carter Motorsports, which owns the cars, said it is evaluating its sponsorship situation.

``NASCAR is so sponsor driven, so obviously they would have to find another sponsor,'' if Kmart pulled its support, said Mike Mooney, with Cox Marketing Group.

Kmart has sponsored a NASCAR race team for more than five years.

The No. 3 discount retailer filed for Chapter 11 protection on Jan. 22, following disappointing holiday sales and lower-than expected fourth-quarter earnings.

NewbieZ71 · February 3, 2002

Ok, you started it. This is the crap I hate. NASCAR Sponsership? YOU GOTTA BE KIDDING ME. These folks are smack dab in the middle of screwing their vendors out of mega bucks (like me for about 10 grand) and they have to spend more money to hold a big meeting to decide whether or not to sponsor a race car ??!? Probably just happen to hold the big meeting in Daytona say in a few weeks or so? Wouldnt want their big shots to lose any Daytona benefits now would we? Oh, I know many of us have gone to Kmart over the years because of the RACE CAR THEY SPONSOR. Yeah, right. Unbelievable. If you are going to declare bankruptcy and take people for money then you should be forced to suck it up. please.

Elwood · February 3, 2002

Now this is the kind of heated discussion I like to see when I start a thread.

But seriously. I agree 100%, they should cut it out now.

NewbieZ71 · February 3, 2002

I happened across some bankruptcy papers for a company we did business with a year or so ago. You wouldnt believe what they included. Talked all about how the stock was worth a peeny a share and how much the preferred creditors would get and others were totally stiffed.... then in about Section 199 they outlined how ALL bonuses and bennies would remain in effect for the the principle management folks including performance bonuses. Excuse me, how does one get a "performance bonus" from a company you;ve helped go into bankruptcy?

OK, I feel better now.