Walmart Asks Senator Hyde-Smith for Refund Over Comment on Video

Walmart Asks Senator Hyde-Smith for Refund Over Comment on Video

(Bloomberg) -- Walmart Inc. has asked Republican Senator Cindy Hyde-Smith, who is under fire for making a racially charged remark, to refund its donations.

Following a storm of criticism on social media, the retailing giant said in a tweet Tuesday that it was "requesting a refund of all campaign donations" from Hyde-Smith, who is facing a Nov. 27 runoff in Mississippi against Democrat Mike Espy, the final Senate contest of the 2018 political season.

Walmart made the decision after a video that captured Hyde-Smith saying she would be "on the front row" if invited by a supporter to a "public hanging" went viral last week. Mississippi has a history of racial bigotry and lynchings, and the comment put Hyde-Smith on the defensive.

Espy, who served as Agriculture secretary in President Bill Clinton’s cabinet, is an African-American.

Hyde-Smith’s campaign didn’t comment on Walmart’s refund request. A spokeswoman referred to a statement the senator had issued previously concerning her remark on the video. Hyde-Smith said she was reacting to a rancher standing next to her who invited her to a speaking engagement.

"In referencing the one who invited me, I used an exaggerated expression of regard, and any attempt to turn this into a negative connotation is ridiculous," she said at the time.

Espy’s campaign praised Walmart’s move, with spokesman Danny Blanton saying in a statement that the controversies show "why she can’t be trusted to work with the businesses Mississippi needs to grow good paying jobs."

Support Withdrawn

Walmart is part of a growing list of companies that are withdrawing support from Hyde-Smith after her remarks set off a burst of outrage across social media platforms. Pfizer Inc. Tuesday also requested a refund from her campaign, according to Sharon Castillo, a company spokeswoman.

Defense contractor Leidos Holdings Inc. said Monday on Twitter that Hyde-Smith’s remarks were "offensive and an affront to everything we stand for as a company," adding that it donated before they became public. Boston Scientific Corp. and Union Pacific Corp. have asked for their money back as well.

Hyde-Smith, who was appointed earlier this year upon the resignation of Republican Senator Thad Cochran, also drew criticism for suggesting, during a campaign appearance, that she approved of making it more difficult for liberals to vote. Her campaign later said she had been joking.

Walmart’s political action committee contributed a total of $4,000 to the campaign of Hyde-Smith.

The Walmart PAC sent $2,000 to Hyde-Smith’s campaign on Nov. 18, about a week after her comments became public, Federal Election Commission records show. Walmart wasn’t aware of her comments at the time it made the donation, according to a person familiar with the company’s thinking who wasn’t authorized to discuss it.

Because the race in the Republican stronghold has drawn millions in spending by super-PACs and party committees, the financial impact of Walmart’s decision could pale in comparison with the political fallout.

"Sen. Hyde-Smith’s recent comments clearly do not reflect the s of our company and associates," Walmart said in a tweet it made in response to television actress Debra Messing, who publicized the donation on Twitter.

Get live Stock market updates, Business news, Today’s latest news, Trending stories, and Videos on NDTV Profit.
GET REGULAR UPDATES