January 22, 2002

Stone Pony nightclub is in center of dispute over redevelopment plan for Asbury Park, NJ; developer Ocean Front Acquisitions wants to move club away from area earmarked for new housing, but supporters of club are horrified by notion, saying town was built for entertainment, not as bedroom community, and its history must be honored; residents would like to see development and revitalization of their town and some are resentful of outsiders interference on behalf of Stone Pony; photos (M)

Kmart Expected to Seek Bankruptcy Protection Kmart is expected to file for bankruptcy protection as early as this morning in Michigan, where it is based, according to advisers to the company. The final straw was a decision by the Fleming Companies, a major food distributor, to halt most of its shipments to Kmart after not receiving its weekly payment. [Page A1.]

Martha Stewart, star of Kmart Corp's retail lineup, is expected to stay with Kmart even if retailer files for bankruptcy because language in contract is not clear and her departure could prompt lawsuit from Kmart; Martha Stewart Living Omnimedia president-chief operating officer Sharon Patrick says bankruptcy judge would have lot of leeway in how to interpret contract; some retail experts have speculated that Stewart would have little trouble reestablishing her products at another chain; turnaround at Kmart would depend heavily on Stewart's continued presence (M)

Michael R Bloomberg, New York City's new mayor, commemmorates Martin Luther King's Birthday by invoking his own version of late civil rights leader's dream, stating that he will listen to wide variety of New Yorkers from all races and backgrounds; makes whirlwind tour of city's black neighborhoods; is warmly embraced by black leaders, including Rev Al Sharpton and former Mayor David N Dinkins; photo (M)

Charlotte Hornets defeat New York Knickerbockers, 111-68, in worst loss at home in Knicks' franchise history; photos (M)