New York ? In Kmart Corp.’s first major marketing event since filing for bankruptcy in January, the company turned to a pack of tap-dancing theater kids to showcase its exclusive line of The Walt Disney & Co.’s children’s apparel, shipped to stores last month.

James B. Adamson, Kmart’s new chairman, said developing exclusive partnerships with vendors like Martha Stewart, Disney and Sesame Street while fortifying the company’s urban business would be key to its turnaround.

Mickey Mouse and Chuck Conaway, right, chief executive officer of Kmart Corp., celebrate the launch of a new line of Disney brand apparel to be sold in Kmart stores. The new clothes sportswear, sleepwear and swimwear - were revealed during a fashion show Tuesday at Kmart's Astor Place store in New York.

The Disney collection of swimwear, sleepwear and sportswear is designed without Disney characters a first for the entertainment company.

Adamson acknowledged after the fashion show Tuesday at Kmart’s store in downtown New York, “It’s not business as usual.”

The nation’s third largest discounter is struggling with empty shelves, particularly in the electronics area, as some suppliers still have not resumed shipping. Kmart is currently about 80 percent stocked.

Kmart has a store and a regional distribution center in Lawrence.

Adamson admits that the bankruptcy filing creates “a unique challenge” in holding on to key vendors, though many have showed their support. He has met with Martha Stewart twice, and wants to further develop her line of home accessories into the black and Latino markets.

About 40 percent of dollars spent at Kmart are from Asian-Americans, blacks, Hispanics and American Indians, Adamson said.

Kmart also is fighting hard to keep its customers from going elsewhere, and is carefully conserving its cash. Sales this past month have also been down, Adamson said.

“It’s hurting everyday that we are in bankruptcy,” said Adamson, who is aiming for Kmart to exit Chapter 11 earlier than the announced July 2003 date. “It’s tough to be competitive.”

He said he envisions Kmart as a $35 billion company a year from now, due to store closings and the reduction of certain product categories. Kmart’s fiscal 2001 sales totaled $37 billion.

Kmart will reveal its plan for store closings March 11, Adamson said, adding that reports of up to 700 store closings were too high. The company will announce its overall merchandising vision sometime this summer, he said.