F & M DISTRIBUTORS TO CLOSE 31 STORES
WARREN, Mich., January 25, 1995 -- F & M Distributors, Inc. (Nasdaq:
FMDDQ) today announced it will close 31 stores in an action intended to
improve the Company's financial performance.
Prior to the commencement of its Chapter 11 filing in December, the Company
announced the probability of closing underperforming or unprofitable stores.
After financial analysis of its 119 F & M super drugstores, the Company has
identified 31 stores that do not meet its sales, profit and return on
investment requirements and will close these stores within 90 days.
F & M will close 7 stores in Minneapolis, 11 in Boston, and 3 in
Indianapolis; and, as a result, will no longer have a presence in these
markets. In addition, F & M will close 10 stores in its remaining markets.
Those metro markets are Detroit, Chicago, Milwaukee, Baltimore and Washington,
D.C. The Company will continue its strong presence in these remaining core
markets with 88 F & M Super Drug Stores.
Dale Ward, President and Chief Executive Officer, commented, "We regret
having to close these stores, but it is a major step forward to improving the
performance of our business. We believe these actions afford us the
opportunity to focus our attention on our remaining markets in which F & M has
a strong retail store base."
F & M Distributors currently operates 119 F & M deep discount super
drugstores, offering a wide selection of branded health and beauty aids,
cosmetics and fragrances and household supplies at every day low prices. In
addition, the Company operates six PartiGiant deep discount party supply
superstores in Michigan and Illinois.
STORES TO BE CLOSED
7150 East Washington Street Indianapolis, Indiana
8030 South US #31 Indianapolis, Indiana
1961 North Mannheim Melrose Park, Illinois
4097 24th Avenue Port Huron, Michigan
7310 West 87th Street (Harlem) Bridgeview, Illinois
13653-D Lee Jackson Memorial Highway Chantilly, Virginia
1300 East 86th Street Unit B Indianapolis, Indiana
2401 Fairview Avenue Roseville, Minnesota
1735 Beam Avenue Maplewood, Minnesota
5951 Earle Brown Drive Brooklyn Center, Minnesota
7435 France Avenue Edina, Minnesota
1227 North Rand Road Arlington Heights, Illinois
740 South Rt. 59 Naperville, Illinois
1811 South Robert Street West St. Paul, Minnesota
13901 Aldrich Avenue Burnsville, Minnesota
7601 South Cicero Avenue Chicago, Illinois
2520 East Lake Street Minneapolis, Minnesota
490 Elden Street Herndon, Virginia
292 Daniel Webster Highway Nashua, New Hampshire
6828 Racetrack Road Bowie, Maryland
85 Torrey Street Brockton, Massachusetts
1324-1334 Worcester Natick, Massachusetts
1110 Newport Avenue South Attleboro,Massachusetts
281 Chelmsford Street Chelmsford, Massachusetts
135 Pearl Street Braintree, Massachusetts
65 Commerce Way Seekonk, Massachusetts
444 Broadway Saugus, Massachusetts
8401-D Indianapolis Boulevard Highland, Indiana
1450 Pleasant Valley Road Manchester, Connecticut
570 Boston Providence Hwy., Rte. #1 Norwood, Massachusetts
3491 Berlin Turnpike Newington, Connecticut
/CONTACT: Laura Kendall, SVP & Chief Financial Officer of F & M
Distributors, 810-758-1400, Ext. 251; or Naomi Rosenfeld, Eileen Howard or
(Media) Stacy Berns of Morgen-Walke Associates, 212-850-5600/
GRAND UNION BANKRUPTCY NEWS: THE BY-FAX NEWSLETTER
PRINCETON, N.J., January 25, 1995 -- Catering to the niche market of
attorneys, accountants, investment bankers, creditors, and other persons
interested in the chapter 11 bankruptcy filings by The Grand Union Company,
Bankruptcy Creditors' Service, Inc., today announced the publication GRAND
UNION BANKRUPTCY NEWS.
"GRAND UNION BANKRUPTCY NEWS -- like our other niche market bankruptcy
newsletter titles -- provides subscribers with the most detailed, in-depth
news about Grand Union's attempts to restructure its billions of dollars of
debt, reorganize its business operations and emerge as a healthy company
pursuant to chapter 11 of the U.S. Bankruptcy Code," says Peter A. Chapman,
President of Bankruptcy Creditors' Service, Inc., and Editor of GRAND UNION
Chapman explains that professionals involved in a chapter 11 bankruptcy case
of Grand Union's magnitude quickly find it difficult to wade through the
mountains of paper and hours of court hearings. This is where GRAND UNION
BANKRUPTCY NEWS takes center stage, condensing and compiling all these events
into a handy weekly by-fax newsletter.
Today's first issue of GRAND UNION BANKRUPTCY NEWS includes:
(i) background information about Grand Union;
(ii) a summary of Grand Union's restructuring plan;
(iii) a chronology of key events leading to the chapter 11
(iv) details from Grand Union's chapter 11 bankruptcy
(v) the coveted list of Grand Union's 20 largest unsecured
Chapman says that next week's issue will provide subscribers with detailed
information concerning the handfuls of motions Grand Union brought before the
bankruptcy court today necessary to keep the business operating without
interruption from customers' and employees' perspectives, as well as details
contained in the company's pre- negotiated plan of reorganization.
GRAND UNION BANKRUPTCY NEWS is distributed on a subscription basis by
facsimile transmission for $30 per issue plus nominal fax charges. New issues
are published as significant activity occurs (generally weekly) in the Grand
Chapman stated that one copy of today's first issue of GRAND UNION
BANKRUPTCY NEWS is available at no charge upon request.
Chapman further advised that copies of Grand Union's pre-bankruptcy press
releases and filings with the Securities and Exchange Commission are available
for free via the Internet at (URL:http://bankrupt.com/grand.union.html).
/CONTACT: Peter A. Chapman of Bankruptcy Creditors' Service, Inc.,
609-924-8949; telecopier, 609-924-8963; or E-Mail: firstname.lastname@example.org/
Crystal Brands makes announcement
NEW YORK -- January 25, 1995--Crystal Brands Inc., which is
operating under Chapter 11 of the Bankruptcy Code, announced today that it has
entered into an agreement with Phillips-Van Heusen Corp. for the sale of
substantially all of Crystal Brands' and its subsidiaries' assets (exclusive
of cash and cash equivalents) for a cash purchase price of $114,711,000,
subject to certain adjustments.
The assets being sold comprise Crystal Brands' apparel and retail businesses
and include its Gant, Izod and Salty Dog trademarks. The consummation of the
transaction, which is expected to occur by Feb. 28, 1995, is subject to
customary closing conditions, including Bankruptcy Court approval, and is also
subject to any higher and better offers which may be received by Crystal
Brands for the businesses being sold prior to such approval.
Following consummation of this transaction, Crystal Brands intends to
propose a Chapter 11 plan pursuant to which it will liquidate its remaining
assets and distribute its cash to its creditors.
In commenting upon today's announcement, Charles J. Campbell, chairman of
the board and chief executive officer of Crystal Brands, said, ``We are
extremely proud of the performance of our businesses this past year. After
three consecutive years of significant losses, Crystal Brands will post a
profit in fiscal year 1994. I feel that a very dramatic turnaround has been
accomplished and that the business has returned to the state of health that I
expected it would.''
Crystal Brands produces sportswear for men and boys under the brand names
Gant, Salty Dog and Izod; active sportswear for men and women under the Izod
Club and U.S. Open labels; and sportswear and casual wear for women under the
CONTACT: Crystal Brands Inc., New York
Charles J. Campbell, 407/351-5555
Michael B. McLearn, 212/502-6255
LESLIE FAY OUTLINE FOR CHAPTER 11 PLAN SUPPORTED BY CREDITORS' COMMITTEE
NEW YORK -- January 25, 1995 -- The Leslie Fay Companies, Inc.
(NYSE:LES) today unveiled the outline of its plan to emerge from chapter 11
bankruptcy court protection. The outline, which has the support of the
company's Creditors' Committee and has been discussed with the Equity
Committee, envisions the emergence of a smaller, leaner Leslie Fay focused
solely on its core dress and sportswear businesses.
Under the plan outline, the company will focus on and separate Leslie Fay
Dresses and Leslie Fay Sportswear, as well as its Nipon, Outlander and
Castleberry lines, from its Sassco Fashions business. Leslie Fay will sell its
Sassco business or spin it off to creditors as a separate entity with its own
equity. The company noted that it has been involved in active negotiations
with a potential buyer of Sassco and ultimately may agree to a sale if the
buyer offers a price agreeable to the company and its creditors and obtains
appropriate financing. Sassco, based in Secaucus, N.J., manufactures women's
suits, dresses and sportswear under the Kasper for A.S.L. and Albert Nipon
The outline envisions that creditors would receive new equity in a company
owning the core businesses as well as cash resulting from a sale, or debt and
equity securities from a spin-off, of Sassco. Leslie Fay's current
stockholders may receive warrants to purchase shares of Sassco if it is not
sold, and stock and/or warrants of the reorganized Leslie Fay core businesses,
in amounts and at strike prices to be determined at a later date.
John J. Pomerantz, Leslie Fay's Chairman and Chief Executive Officer, said:
"From the beginning of the chapter 11 process, our main objective has been to
develop a consensual plan of reorganization that serves the best interests of
our creditors, customers, employees, shareholders and other key
constituencies. We believe this outline is an important step towards that
"We are confident that spinning off Sassco as a separate entity or selling
it to a qualified buyer is the best way to maximize the return to creditors.
This should enable Leslie Fay to emerge from chapter 11 with its core
businesses intact so that we may continue to serve our long-time customers in
the department store and specialty retail businesses."
Leslie Fay's Board of Directors and Creditors' Committee have asked Mr.
Pomerantz to continue leading the company as Chairman and CEO, and he has
agreed to do so.
As a result of the focus on core businesses contemplated by the proposed
outline, Leslie Fay has begun to significantly downsize its corporate office,
eliminate certain functions, and streamline its organization. The goal of
these actions is to achieve annual savings of approximately $15 million.
Leslie Fay has retained Jay Alix & Associates, a leading management consulting
firm, to assist in this process, subject to court approval.
In conjunction with the downsizing of the corporate office, Michael Babcock,
President and Chief Operating Officer, has recently left the company and
Donald Ochs, Senior Vice President of Worldwide Sourcing and Manufacturing,
will leave shortly.
Mr. Babcock, 53, joined Leslie Fay in October 1992 as Vice Chairman and was
promoted to his current position on January 1, 1993. Prior to joining the
company, he held senior leadership roles at several of the most well-known
names in retailing, serving as Chairman and CEO of Galerias Preciados in
Madrid, Spain; President and CEO of the L.J. Hooker Retail Group, with
responsibility for Bonwit Teller, B. Altman's, Sakowitz, Merksamer Jewelers,
and Parisian; and Chairman and CEO of Filene's, the New England fashion chain.
Prior to Filene's, he spent 15 years with the May Department Stores Company,
including service as President and CEO of G. Fox and Company in Hartford,
"Under extremely difficult and unanticipated circumstances, Mike Babcock
spearheaded the effort to restructure and centralize our organization, reduce
costs and develop a sound business plan to carry our company into the future,"
Mr. Pomerantz said. "We all wish him well in his future endeavors."
Mr. Babcock said: "When I decided to join Leslie Fay more than two years
ago, the company had nearly $1 billion in sales and plans for further
expansion. Shortly after I arrived, however, we learned of the accounting
irregularities, which ultimately led to the chapter 11 filing and subsequent
restructuring and downsizing of the company -- a process I agreed to oversee.
Now, as we begin to prepare for Leslie Fay's emergence from chapter 11, I feel
my mission has been completed and it is time for me to pursue new challenges."
Mr. Ochs, 53, joined Leslie Fay in his current capacity in October 1993. He
was recruited to establish a centralized worldwide sourcing function for more
than 10 separate divisions. Now that the company is focusing solely on its
core businesses, the need for a large corporate sourcing function has been
"Don has assisted us in streamlining and simplifying our manufacturing
functions," Mr. Pomerantz said, "but with our downsizing, the scope of his
expertise would no longer be fully utilized. We wish him the best."
Prior to joining Leslie Fay, Mr. Ochs served as Senior Vice
President/Manufacturing of Liz Claiborne's moderate companies, which include
Russ, Villager, and Crazy Horse. He has also held management and technical
positions in manufacturing at Bobbie Brooks, Inc. and Devon Apparel.
Founded in 1947, The Leslie Fay Companies, Inc., is one of the nation's
leading manufacturers of women's apparel, including dresses, suits and
sportswear. Its brand names include Leslie Fay, Nipon Boutique, Nipon Studio,
Kasper for A.S.L., Nolan Miller, Castleberry, Outlander, Andrea Gayle and HUE.
CONTACT: Kekst and Company, New York
James Fingeroth/Michael Freitag, (212) 593-2655