TCR_Public/950125.MBX



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
BANKRUPTCY NEWS.
  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
        filings;
   (iv) details from Grand Union's chapter 11 bankruptcy
        petition; and
    (v) the coveted list of Grand Union's 20 largest unsecured
        creditors.
  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
Union cases.
  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: peter@bankrupt.com/





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
Izod name.

           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
labels.
  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
objective.
  "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,
Conn.
  "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
eliminated.
  "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




THRIFTY TEL, INC. ANNOUNCES DISCONTINUATION OF TELEPHONE SERVICE AND
      OPERATIONS

  LOS ANGELES, Jan. 24 /PRNewswire/ -- Thrifty Tel, Inc. (Nasdaq-Bulletin
Board: THRF), a long distance service company, has been operating under
Chapter 11 of the Bankruptcy Code since December 27, 1994.  The Company moved
the Bankruptcy Court for permission to use its cash receipts in its
operations.  The Bankruptcy Court denied the company's motion which has
prevented the Company from using its cash receipts.  The Company required the
use of its cash receipts to remain as a going concern.
  On January 24, 1995, one of the Company's major telephone line suppliers,
Pacific Bell, discontinued service.  As a result of the termination of
service, the Company's customers were not able to complete telephone calls.  
Consequently, the Company was forced to discontinue operations and terminate
all of its employees.
  Thrifty Tel, Inc. was a long distance telephone service company
headquartered in Garden Grove, California.
  /CONTACT:  James Wood of Thrifty Tel, Inc., 714-740-2880/