A high ranking marketing executive for the MKRA recently told MK Business Daily that when it came time to seek team sponsors for the new teams this season, they had a rule not to sign a sponsor they felt was on their “last lap,” or about to close down.
Case in point: Toys R Us.
The exec said in the article:
”We have smart contacts in the US that helped guide us in the various deals and steered us in the right directions for many of the sponsors. In terms of retail, we were able to get Target and Amazon on board even though the former had some finance issues that got fixed thankfully and both companies are doing great financially.
When we had designs for possibly getting Toys R Us on board though, we were told about various reports saying they were in trouble and that if they went out of business during the season and sponsored a team, that team would lose it’s main income immediately and frankly, we don’t want to see an unsponsored kart on the track at all.”
Indeed the beloved toy chain and it’s financial woes did force them into Chapter 11 bankruptcy and caused stocks in toy companies like Hasbro and Mattel to drop and while the chain did say it planned to remain open on social media channels last week, liquidation sales could begin as early as this weekend, wrapping up before the start of summer.
”We sure dodged a bullet there,” the exec said. “It’s a shame that iconic companies you think could last forever eventually bite the dust but that’s business for you in a nutshell. As the saying goes: only the strong shall survive.”