Kmart puts its best communications foot forward in the wake of a bankruptcy filing that comes at a highly volatile time for American business. The retailer is positioning its
Chapter 11 filing as "a chance to make a fresh start and reposition Kmart as the store of the future," according to a statement on the company's Web site. In fact, the site
features an entire section on "Restructuring Information" at http://www.kmartcorp.com/corp/restructuring_information/res_infor_index.stm.
In addition to providing clear, sound, easy to access information on the bankruptcy filing, Kmart communications gurus go on to say, "We will accelerate the transformation of
Kmart into the authority for what Moms value by being in-stock with exclusive, quality brands in pleasing store environments." There can be no more creative spin to bankruptcy
than as a boon to moms.
The company has also appointed Ronald Hutchison, a veteran of corporate restructurings at Advantica Restaurant Group and Leaseway Transportation, as EVP and chief restructuring
officer. It remains to be seen whether Hutchison will play a role in the communications department or will stick to financial and operational issues detailed in his job
description. The only strike against Kmart's crisis communications thus far: Our calls to the corporate communications office were not returned before our deadline. (248/463-
1021)
Meanwhile, as the Enron/Arthur Andersen scandal heats up with congressional appearances by top execs taking the Fifth, the American Institute of Certified Public Accountants is
scurrying to protect itself and its members from the ripple effect.
The Web site (http://www.aicpa.org) features a prominent banner with a response to the Enron crisis and a letter detailing the AICPA's
commitment to creating new self-regulatory processes. "We are diligently working to improve the profession's peer review and disciplinary process as it relates to auditors of SEC
registrants. Our objectives are to include public participation and increase transparency, effectiveness, and timeliness," the statement reads in part.
The site also includes valuable documents like a joint statement from the Big Five CEOs on the Enron debacle supporting the move for more stringent self-regulation.
Geoff Pickard, VP of communications for the institute, has also begun working with outside agency The Weiser Group to help spread the word that it is actively seeking change.
We're willing to bet CPAs nationwide are longing for the days when the only thing cringe-worthy about their reputation was the "nerd" factor. (Pickard: 212/596-6200)