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Author Topic:   Sega sues Kmart
coolant
3d Retreat

Posts: 173
Registered: Nov 2000

posted 02-26-2001 07:06 AM


Sega of America has sued retail giant Kmart for allegedly failing to pay for some $2.2 million worth of Dreamcast consoles, company officials said on Friday. The suit, filed in Superior Court in San Francisco on Thursday, charges Kmart with skipping payment on $2.2 million of a $25.9 million bill for Dreamcast consoles shipped since 1999. News reports earlier said Kmart had stopped carrying Dreamcast in August, speculating that this might have been one reason for Sega's decision. Sega's suit alleges, however, that it was Sega which stopped delivery to Kmart for alleged nonpayment.

“Sega placed a hold on any further shipments to Kmart in June” because of nonpayment, according to Charles Bellfield, a Sega spokesman in San Francisco. “This ongoing, malicious lack of payment by Kmart does not produce a working environment for companies to trade with one another,” Bellfield said.

According to Sega, Kmart accounted for less than 5 percent of Sega's North American sales last year. Worldwide Sega sold more than 6.5 million Dreamcasts, about half in the United States. Kmart, based in Troy, Mich., had no comment on Friday.


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