Kmart in trouble? UPDATE 2 Bankruptcy: getting much email about Kmart’s financial woes and wondering how it will affect the sponsorship of the #26 and #66 Hass Carter Motorsports teams. Have NOT heard a thing about Kmart leaving now or in the near future, their contract with Hass Carter runs thru 2002. See Yahoo Biz for a story about Kmart: Kmart Shares at 36-Year Low; and see an image of the the #26 and #66 cars on the Paint Schemes Gallery for the image(1-17-2002) UPDATE: Kmart will continue its support of two Winston Cup cars in 2002 and will be an official sponsor of the Daytona 500, making the 102-year-old company the most supportive mass retailer of NASCAR. The two Kmart-sponsored cars will be prepared by Haas Carter Motorsports, which is owned and operated by Travis Carter. The two-car team features the #26 Kmart School Spirit Ford driven by newcomer Joe Nemechek and the #66 Kmart Ford driven by Todd Bodine. “We want to see Kmart take the checkered flag this season,” said Tom Lemke, Vice-President Marketing and Sales for Kmart. “Our customers love NASCAR racing and we are putting the power of the Kmart brand behind a program that will give them some great racing action.” Number 26 Kmart School Spirit Ford Kmart’s commitment to NASCAR’s millions of fans and their families is exemplified this year by the company’s School Spirit Program, which will be promoted through the #26 Kmart School Spirit Ford. With this new multi-million dollar fundraising opportunity for K-12 schools nationwide, Kmart plans to donate a minimum of $10 million to participating schools during the 2001-2002 school year. This year-round program turns eligible purchases made at Kmart into cash for schools – allowing children and teachers to focus on schoolwork instead of fundraising. Number 66 Kmart Ford The #66 Kmart Ford, driven by Todd Bodine, has been chosen to represent the brands that have made Kmart an American shopping icon for more than 100 years. Those brands NASCAR fans may see whiz by them at 180 mph this season include Martha Stewart Everyday, Joe Boxer, Route 66, Jaclyn Smith and of course the Blue Light Special, which will be the first paint scheme for the Daytona 500. Kmart and NASCAR go hand in hand. Geographically there is a Kmart store within five miles of every NASCAR Winston Cup racetrack. Kmart aggressively promotes its racing program through its network of more than 2,100 stores nationwide and through its Internet properties – the BlueLight.com online shopping site and the BlueLight $8.95 Unlimited Internet Service. Kmart Sponsors Daytona 500 Kmart also is an official sponsor for the 2002 Daytona 500. As the “Official Retailer” of the Daytona 500, Kmart will have prominent signage throughout the track, visibility in the event program and other promotional opportunities. Kmart shoppers will even have a chance to win a trip to attend the race. As part of Kmart’s effort to reach a wider NASCAR audience in 2002, Kmart will not sponsor the Kmart 400. Instead, the company will focus its marketing efforts across the entire NASCAR schedule, rather than concentrating on just one race.(Golin/Harris PR)(1-19-2002) UPDATE 2: Kmart Corp. on Tuesday filed for bankruptcy protection, the largest retailer ever to do so, after a dismal holiday sales season and cutthroat competition from rivals Wal-Mart Stores and Target Corp. left the company strapped for cash. Troy, Michigan-based Kmart said its 2,114 stores remain open for now, but it will review their future by the end of April. Wall Street analysts have said Kmart needs to close around 300 to 400 stores.(Yahoo) AND Tuesday’s announcement that the Kmart Corp. has filed for Chapter 11 bankruptcy brought into question whether or not the move will affect Haas-Carter Motorsports, the NASCAR Winston Cup Series operation that fields two Kmart-sponsored Fords driven by [#66] Todd Bodine and [#66] Joe Nemechek. Team owner Travis Carter told NASCAR.com on Tuesday that he’s “cautiously optimistic” about the future of his two-car operation. Carter did confirm that Kmart was on schedule with their sponsorship dues at present, and that the company has informed him to continue on with business as usual. “We’ve made some progress and done some real good things for them,” Carter said. “I think last year we did real well for them. The thing that’s encouraging to me is that they’ve come outta the box with a stronger campaign than ever.” Kmart hopes to reorganize rapidly and emerge from Chapter 11 by 2003. Either way, Carter reiterated that he was told Tuesday morning to conduct business as he always has.(NASCAR.com)(1-22-2002)
