Kmart plans to end sports sponsorships

Posted 8:35AM on Wednesday 10th April 2002 ( 23 years ago )

DETROIT - Kmart Corp. will end all of its Detroit-area sports sponsorships at the end of the 2002 season. The bankrupt company's name has been removed from all signs, banners and related items at Comerica Park, and the remaining signage will be taken down at The Palace of Auburn Hills and Joe Louis Arena by the end of the current season. The Troy-based retailer also turned down a possible sponsorship at the Ford Field, the new home of the Detroit Lions. "We looked into it, but we won't be going forward with it given the state of the business," Julie Fracker, a Kmart spokeswoman, told The Detroit News for a Wednesday story. Kmart filed for reorganization under Chapter 11 in January. In court documents, Kmart said its sponsorships were "a drain on cash flow" and "not a source of potential value." The court allowed Kmart to terminate two major auto racing sponsorships with the International Speedway Corp. and Haas-Carter Inc., a NASCAR team owned by Carl Haas and Travis Carter. Kmart was signed as an official corporate sponsor of the Daytona 500 before the retailers financial troubles began. According to court documents, the sponsorship would have cost Kmart about $1.4 million for both the 2002 and 2003 races. In its agreement with Haas-Carter, Kmart paid $19.2 million to sponsor two cars, driven by Joe Nemecheck and Todd Bodine, in the Winston Cup Racing Series. After Kmart withdrew its sponsorship, the team's owners announced that they were suspending their racing operations for the year because it was too late to find a replacement sponsor. ------ On the Net: Kmart Corp., http://www.bluelight.com/

http://accesswdun.com/article/2002/4/196219