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Ann Morales Olazdbal, Anita Cava, and Ren6 Sacasas, Editors University of Miami to its customers. What Capital One did not foresee in nego- Cobranding Requires Strong tiating the written agreement was Kmart's bankruptcy. Contract Protections As a result of the bankruptcy filing, Kmart's brands DOI: 10.1177/0092070306291751 and trademarks understandably lost value. Moreover, Kmart closed approximately 686 stores in 9 months, laying off In re Kmart Corp., 434 E3d 536 (7th Cir. 2006) employees at all levels, including two of the three mem- bers of the executive committee created by the Capital Cobranding agreements can further the public's aware- One contract for all decisions requiring joint action, such as ness of brands through their association. But what happens marketing campaigns and annual promotional budgets. if a negative event taints the public's perception of one of Following the bankruptcy filing, Kmart did not make any the brands? Legally, the precise terms of the contract major plans concerning the contract because, as the court become crucial. Capital One learned this the hard way when found, its energies were devoted to other tasks, including 3 years into its 5-year cobranded credit card arrangement a public relations campaign to revive the public percep- with
Journal of the Academy of Marketing Science – Springer Journals
Published: Apr 10, 2008
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