SALT LAKE CITY, March 27, 1995 -- The Pro
Image, Inc., a wholly owned
subsidiary of Rentrak Corporation href="(Nasdaq:RENT)," target=_new>http://www.secapl.com/cgi-bin/edgarlink?RENT">(Nasdaq:RENT),
announced Friday, March 24,
that due to the Chapter 11 bankruptcy filing (March 23, 1995) of href="chap11.merle.html">Merle Harmon
Enterprises, Pro Image does not expect to close its previously announced
agreement in principle to acquire the assets of Merle Harmon Enterprises and
Fan Fair Development Corporation.
Fan Fair Development Corporation and Merle Harmon Enterprises franchise and
operate 125 specialty fan shops.
Pro Image franchises 200 retail outlets and operates 50 fan shops in the
U.S., Canada, Mexico and Japan.
Brian Carmack, President of Pro Image, said, "We are disappointed by this
unfortunate development. However, we are hopeful that future developments
could allow for further discussions between the two companies."
Rentrak is a diversified information and payment processor and distributor
with operations in home entertainment, systems and retailing.
/CONTACT: Dick Gersh of Richard Gersh Associates, 212-757-1101; or Mervyn
Benjet, Senior Vice President and CFO of Rentrak Corporation, 503-284-7581,
GREENSBORO, N.C., March 27, 1995 -- For more than 75 years,
Montaldo's stores have enjoyed a
well-deserved reputation as a showcase for
fashionable women's apparel and unsurpassed personal service. But that era is
now drawing to a close, as the ready-to-wear pioneer prepares for a
going-out-of-business sale that begins Thursday, March 30.
The sale announcement follows a ruling here today in U.S. Bankruptcy Court
for the middle district of North Carolina. The court approved the Montaldo
Corporation's choice of Cranford, N.J.-based href="dir.firm.fox.promotions.html">Fox Promotions as liquidator of
the stores' inventories. The court approval was necessary because Montaldo's
is operating under Chapter 11 protection.
The special sales will be held at the three remaining stores in Greensboro
and Charlotte, N.C., and in Richmond, Va. The locations will include
inventories that were consolidated from six other Montaldo's units. These
include stores that were closed between December and March in Denver, Colorado
Springs, St. Louis, Raleigh and Winston-Salem, and a location in Chapel Hill
that will be closed tomorrow. At its peak in 1992, the chain had a total of
For the going-out-of-business sale, Montaldo's will be taking an additional
25%-off the lowest ticketed price in dresses, sportswear, bridal, accessories
and jewelry. All cosmetics will be marked down by 10%. The stores will be
closed March 28 and 29 to prepare for this sale event. For the first day of
the sale, all three locations will open at 8:00 a.m.
Although Montaldo's store card has been discontinued, shoppers can use
personal checks, MasterCard and Visa to make their purchases.
Montaldo's stores trace their roots back to Lillian Montaldo Doop, her
husband, Raymond C. Doop, and Lillian's sister, Nelle Montaldo Reed. The
Montaldo sisters opened their first store in 1919, in Independence, Kan. At
the time, their decision to offer women's clothes that were ready-to-wear was
still a new trend. The practice of buying patterns and sewing clothes at home
or having them made by dressmakers was still common.
By combining the convenience of ready-to-wear apparel with fashionable
designs, a high level of personal service and elaborately designed stores
created by Raymond C. Doop, Montaldo's quickly earned a loyal customer
following. This allowed the sisters to expand the operation to additional
locations throughout North Carolina, as well as in Virginia, Ohio, Missouri
All stores adhered to Lillian Montaldo's admonition: "Whatever is
exceptional in quality and design must be offered to Montaldo's customers."
Following her sister Nelle's retirement in 1971, Lillian stepped down as
president in 1973, to be succeeded by her daughter, Barbara Doop Shaw. The
third generation to head the company is current top executive, Casey Ransford
Shaw, Lillian's grandson.
"Montaldo's stores helped pioneer the concept of ready-to-wear apparel for
women, and they established standards in fashion, quality and service that
were unsurpassed," says Clark Rowe, general manager of the southern region for
Fox Promotions. "Unfortunately, the impact of increased competition, the
higher cost of doing business, and a more mobile society that is no longer
totally dependent on local stores has caused the demise of this venerable
/CONTACT: Clark Rowe, 910-292-8592, for Montaldo; or Bill Parness of
Parness & Associates, 908-290-0121/
WARREN, Mich., March 27, 1995 -- F & M
Distributors, Inc., href="(Nasdaq:" target=_new>http://www.secapl.com/cgi-bin/edgarlink?FMDDQ">(Nasdaq:
FMDDQ), announced that it has obtained an interim trade lien in favor of
merchandise suppliers. The interim trade lien, approved in Bankruptcy Court
on Friday, March 24th in the amount of $15 million, is subject to final
approval by the Court in early April. The amount of the trade lien will
ultimately increase to $30 million. F & M's suppliers, extending trade credit
to F & M on or after March 27, 1995 on the same terms accorded to each
supplier's best customers, will have the benefit of the trade lien. The trade
lien allows F & M's suppliers to ship merchandise to the Company on a secured
priority basis ahead of prepetition secured debt thereby providing comfort to
F & M's suppliers in reestablishing full business relationships with the
The trade lien is the result of a cooperative effort between the Company,
its bank lenders and the Unsecured Creditors Committee. F & M has made a $15
million payment on its prepetition bank debt with entry of the interim order
granting the trade lien and will make a further payment of $20 million subject
to entry of the final order in April. In addition, the Company has
renegotiated its $50 million postpetition financing facility, which provides,
among other terms, for trimming the amount of the facility over the next four
months to $20 million. To date, F & M has not needed its financing facility
except to support letters of credit.
Dale D. Ward, F & M 's President and Chief Executive Officer, noted, "The
granting of the trade lien is the final step required to restore full
replenishment of merchandise to our stores. I am pleased with the progress
the Company has made at these early stages of the chapter 11 filing,
particularly the ability to paydown prepetition debt. F & M has acted swiftly
in divesting itself of unprofitable operations, lowering its investment in
inventory, and increasing its cash reserves. Our associates can now move
forward in the implementation phase of redesigning our store layouts,
enhancing our merchandise assortment, and improving customer service with full
The Company currently operates 88 F & M deep discount super drugstores
located primarily in Chicago, Detroit and Baltimore/Washington D.C. Its
retail stores offer a wide selection of branded health and beauty aids,
cosmetics and household supplies at every day low prices.
F & M currently is operating and managing its business as a debtor in
possession under chapter 11 of the United States Bankruptcy Code. The chapter
11 reorganization case was commenced by the Company on December 5, 1994.
/CONTACT: (company) Laura Kendall, 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/