Other vendors, including Sara Lee Corp., Pepsi bottlers and Frito-Lay Inc. say Kmart is dragging its feet on their outstanding bills and have asked the court to clarify when their debts will be settled.
Meanwhile, the Detroit Free Press reports that Kmart has been a major contributor of unregulated soft money to political parties. Kmart gave $555,000 to parties and their causes in the two years leading up to the November 2000 election, and $175,000 to political party committees in 2001, including $50,000 to a Republican fund-raiser in Washington attended by President Bush.
Moderator Comment: What are the most contentious issues in trade relations today and what needs to be done to fix the way suppliers and distributors do business with one another?
It has long been a contention by smaller chains and independents that manufacturers give the large chains more flexibility when it comes to payment terms. The small guys need to pay up if they want product but the large regional, national and international retailers can pretty much determine terms as well as special packaging, promotions, etc. Will the large CPG companies rethink how they deal with chains based on the Kmart experience? [George Anderson - Moderator]