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<i> Times Staff and Wire Reports</i>

Kmart Launches Critical Holiday Ad Campaign: The Troy, Mich.-based retailer, troubled by credit worries that have pounded its stock price to a 13-year low, is turning to a little comic relief in a new television advertising campaign for the holiday shopping season. The 10 commercials featuring actresses Rosie O’Donnell and Penny Marshall began airing nationally Sunday night and represent Kmart Corp.’s biggest holiday campaign in more than five years. Kmart spokeswoman Shawn Kahle declined to disclose the budget for the campaign, but said the retailer normally produces only three or four holiday shopping commercials each year. Kmart needs a successful Christmas selling season to calm fears about its ability to service its debt, analysts say.

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