Stock Car Racer’s Sponsor Files for Bankruptcy Protection

Speed week is underway in Daytona Florida this week and will culminate with the 58th running of the Daytona 500 NASCAR stock car race. The Daytona 500 is one of the preeminent stock car races on the NASCAR race schedule and arguably the most famous. How are the Daytona 500 and a bankruptcy case related? They are not directly related but for a bankrupt company’s sponsorship of a racing team on the NASCAR Camping World Truck Series. A  North Carolina company by the name of Zloop Inc. filed for bankruptcy protection in August of 2015. What I found interesting about this company is that it recycles old electronic equipment like computers, televisions, and similar items to sort out sellable bits of copper, silver, gold, etc. that are contained in this type of equipment.

The company spent $1.7 million dollars over a 20 month span as a sponsor of a racing team in the NASCAR Camping World Truck Series races. The race driver of this team just happens to be the son of the company’s CEO. This $1.7 million was used for a Kyle Busch Motorsports racing sponsorship that made the CEO’s son the lead driver.  The United States Department of Justice stated in recently filed court documents that, “More money was spent on furthering the professional racing career of the CEO’s son than in another part of operating the business during 2014 and 2015.”  I would imagine that the cost of putting together and operating a racing team at this level requires a tremendous amount of money, but the return to a company for this type of advertising can be great as well. Let’s just hope that the driver of the number 54 Toyota Tundra in the NASCAR Camping World Truck Series, has a long and successful career.

The attorneys at Bond and Botes have been successful for many years handling both chapter 7 and chapter 13 bankruptcy cases. When I meet with a client for the first time, I discuss these 2 options in great detail so that they can choose a the right one for them. The best part of this initial consultation is it is free so you have nothing to lose. If you are struggling with debt and need assistance, please contact our office and set up an appointment for a free consultation to meet with an attorney face to face so you can understand your options.