SPRINGFIELD, Mass. -- March 3, 1995 -- In conjunction with
its Plan of Reorganization and moving toward the completion of its Chapter 11
case, All For A Dollar Inc. ("AFAD") has filed a disclosure statement with the
U.S. Bankruptcy Court.
The disclosure statement outlines AFAD's plan for the settlement of debt and
summarizes its anticipated operations following approval of the Plan of
Reorganization. The Plan has been proposed jointly by the Committee of
unsecured creditors and AFAD. The disclosure statement will be the subject of
a hearing before the Bankruptcy Court at Springfield, Mass. on March 22.
Once the disclosure statement has been approved by the Court, the Court will
set a date for a hearing on the Plan of Reorganization itself and permit AFAD
to commence the solicitation of votes for approval of the Plan. It is
anticipated that this hearing will be held before the end of April.
Confirmation of the Plan of Reorganization by the Court will require the
affirmative votes of creditors holding at least two-thirds of the aggregate
indebtedness held by the voting creditors, and comprising at least 50 percent
in number of those creditors voting on the Plan.
In addition, because the Plan contemplates the issuance of warrants to
purchase AFAD common stock to a lender who would provide post-Chapter 11
financing to AFAD, the Plan will be submitted to AFAD shareholders for their
approval, and will require the affirmative votes of shareholders who hold at
least two-thirds of the shares which are voted on approval of the Plan.
The Plan of Reorganization provides for a 35 percent cash settlement of all
unsecured claims incurred by AFAD before its Chapter 11 case was filed on June
27, 1994. All post-Chapter 11 obligations of AFAD will be paid in full in
accordance with terms arranged with individual creditors.
AFAD has downsized its operations in Chapter 11 from 166 to 114 locations in
nine states. Roger Slate, president of AFAD, stated that the company has
implemented significant changes in its marketing strategies and operating
methods, which will permit AFAD to operate profitability and efficiently in
the future. Slate also noted that several competitors of AFAD have terminated
operations in the past year and that the business climate has improved
materially in several locations.
AFAD, as it emerges from Chapter 11, intends to add five (5) new outlets
during the summer and fall of 1995. Its marketing strategy will be to place
greater emphasis on the scale of consumables and, in some instances, to shift
from a concentration of locations in enclosed malls to locations in strip
centers. Slate also noted that price points may be expanded to include items
that will sell at retail for more than $1.00. Approximately 200 jobs will be
preserved in the greater Springfield area as a result of the successful
reorganization of the company.
The company also announced that it has hired Donald A. Molta of Wolcott,
Conn., to serve as chief financial officer effective march 1, 1995. Molta, a
former senior auditor at Coopers & Lybrand's Springfield office, was most
recently associated with Bob's Stores, a subsidiary of Melville Corp., as vice
president of finance. AFAD also announced the employment of Donald M.
McMillan of Lee, Mass., as director of store merchandising. McMillan was
associated with Kay Bee Toy and Hobby and Melville Corp. for 15 years. His
most recent position was that of director of store operations.
CONTACT: All For a Dollar,
Donald A. Molta, 413/733-1203