PHAR-MOR TO CONSOLIDATE BASE OF CORE STORES IN PREPARATION FOR EMERGENCE
FROM CHAPTER 11
Company to Close 41 Stores, Leaving a Base of 102 Solidly Profitable
YOUNGSTOWN, Ohio--May 12, 1995-- Phar-Mor, Inc.
announced today that as part of its business strategy to focus on markets with the
strongest long-term growth potential, it will close 41 stores before it emerges from
Chapter 11, leaving a core base of 102 solidly profitable stores in 19 states
with combined annual sales of more than $1.1 billion. The Company also
disclosed that its business plan provides for opening 36 new stores during the
next four fiscal years.
The stores that will be closed include 17 in Florida, eight in Indiana,
three in Nevada and in Missouri, two in South Carolina, and one in Alabama,
Iowa, Illinois, Kentucky, North Carolina, South Dakota, Tennessee, and
Virginia. Phar-Mor stated that it is engaged in discussions to sell several
of its stores on a going-concern basis. The Company will conduct going out of
business sales at the stores affected by this announcement, with the exception
of the stores that may be sold.
Phar-Mor's CEO, Tony Alvarez, said: "With Phar-Mor's emergence from Chapter
11 nearly at hand, we have developed a strategic business plan that sets high
standards for each of the Company's activities and provides aggressive
performance targets for each store. Going forward, we expect to pursue a
growth strategy that focuses on markets where our stores have been strongest.
"Based on this plan, we decided to build on an existing core of 102 solidly
profitable stores that are well-positioned to compete and grow in their
markets. In making this decision, we are motivated by two key objectives: to
make sure that each store contributes significantly to the Company and that
each market fits Phar-Mor's long-term growth strategy. We are also mindful of
the fact that once we emerge from Chapter 11 we will no longer be able to
reject store leases without significant penalty."
The Company said that for a variety of reasons, including disappointing
sales results and higher than acceptable operating costs, the stores being
closed were either unprofitable or did not have long-term growth potential.
Phar-Mor said it would petition the U.S. Bankruptcy Court in Youngstown to
proceed with the closure of the designated stores and that a Court hearing for
the store closings has been scheduled for May 23, 1995. The stores to be
closed will continue normal operations until such time as the Court approves
the store closing plan.
Phar-Mor, headquartered in Youngstown, is a deep-discount retail chain.
When the store consolidation is complete, it will have 102 stores in 19
states. On August 17, 1992, Phar-Mor filed for protection under Chapter 11 of
the U.S. Bankruptcy Code. It filed two alternative Plans of Reorganization
with the Bankruptcy Court on April 24, 1995.
STORES TO BE CLOSED
NAME CITY STATE
Eastdale Mall Montgomery AL
Deerfield Deerfield Beach FL
Countryside Plaza Clearwater FL
Colonial Plaza Fort Myers FL
Sunshine Mall Clearwater FL
Desoto Junction Bradenton FL
Colonial Promenade Orlando FL
Lakeland Lakeland FL
The Terrace Orlando FL
Embassy Crossing Port Richey FL
Temple Terrace Temple Terrace FL
Regency Square Brandon FL
Shopps of W. Melbourne Melbourne FL
Kendallgate Center Miami FL
Interstate Mall Altamonte Springs FL
Tower Shops Davie FL
Lakeland-North Lakeland FL
Cape Coral (Ames) Cape Coral FL
Westridge Shopping Centre Clive IA
Westfield Plaza Belleville IL
Glenbrook Commons Ft. Wayne IN
Indian Ridge Shopping Ctr Mishawaka IN
Castleton Plaza Indianapolis IN
Lafayette Place Indianapolis IN
Washington Place Indianapolis IN
Eastland Shps Shpg Evansville IN
Greenwood (Ames) Indianapolis IN
Village At Town Crns Ft. Wayne IN
Kentucky Oaks Mall Paducah KY
N County Festival Ferguson MO
Mid Rivers Plaza St. Peters MO
Primrose Marketplace Springfield MO
K Mart Plaza Durham NC
Westland Fair Las Vegas NV
Tropicana Centre Las Vegas NV
Las Vegas East Las Vegas NV
Centre at Westgate Spartanburg SC
Aiken Mall Aiken SC
Western Mall Shpg Sioux Falls SD
Rivergate Station Madison TN
Candler's Station Lynchburg VA
/CONTACT: Gary Holmes, 212-484-7736 or Robert Mead, 212-484-6701, both for
ARI HOLDINGS, INC. REPORTS FIRST QUARTER RESULTS
LAWRENCEVILLE, N.J.--May 12, 1995-- ARI Holdings, Inc. (AMEX:
ARI) (formerly known as American Reliance Group, Inc.) today reported results for the
quarter ended March 31, 1995.
Revenues for the quarter were $660,000, compared to $1,657,000 for the first
quarter of 1994. Post-closing consideration from the sale of insurance
operations was $270,000 for the first quarter of 1995, compared to $1,361,000
for the first quarter of 1994. The decrease in post-closing consideration is
due to the decrease in the rate of these payments from 8% to 3.5% effective
July 1, 1994, and a previously announced adjustment for overpayments of
$239,000. Net income for the first quarter of 1995 was $314,000 or $.14 per
share, compared to $1,005,000 or $.45 per share in 1994.
As previously reported, the Board of Directors of the Company has approved a
proposed plan of liquidation, pursuant to which the Company will sell its
wholly owned subsidiary, American Reliance Casualty Company ("Casualty"), to
American Reliance Insurance Company ("Mutual") in exchange for Mutual's 60.8%
interest in the Company, and then dissolve. The plan is subject to
shareholder approval and the approval of the Insurance Commissioner of the
State of New Jersey.
The plan of liquidation will be presented to shareholders at a special
meeting in the second quarter of 1995. There can be no assurance that either
the shareholders or the Insurance Commissioner will approve the plan, nor as
to the amount per share or timing of the liquidating dividend.
ARI HOLDINGS, INC.
(Amounts in thousands, except per-share data)
Three months ended March 31, 1995 1994
Post-closing consideration $270 $1,361
Net investment income 390 295
Total revenues 660 1,657
Income before tax 314 1,005
Net income (loss) $314 $1,005
Earnings per share $.14 $.45
Average shares outstanding 2,236 2,236
/CONTACT: Karen S. Fulton, President of ARI Holdings, 609-895-3067/
ROCKEFELLER BANKRUPTCY NEWS: FIRST ISSUE FREE
PRINCETON, N.J.--May 12, 1995-- Catering to the niche market of
attorneys, accountants, investment bankers, creditors, vulture investors and
other persons interested in the chapter 11 bankruptcy filings by Rockefeller
Center Properties and RCP Associates, Bankruptcy Creditors' Service, Inc.,
today announced publication of ROCKEFELLER BANKRUPTCY NEWS.
"ROCKEFELLER BANKRUPTCY NEWS -- like our other niche market bankruptcy
newsletter titles -- provides subscribers with the most detailed, in-depth
news about the Rockefeller partnerships' attempts to restructure millions upon
millions of dollars of debt, reorganize their business operations and emerge
as a healthy companies under to chapter 11 of the U.S. Bankruptcy Code," says
Peter A. Chapman, President of Bankruptcy Creditors' Service, Inc., and Editor
of ROCKEFELLER BANKRUPTCY NEWS.
Chapman related that today's first issue of ROCKEFELLER BANKRUPTCY NEWS
Chapman says that next week's issue will provide subscribers with detailed
coverage of the handfuls of motions brought before the bankruptcy court
yesterday and today that were necessary to keep the partnerships operating
without interruption from tenants' and employees' perspectives.
ROCKEFELLER BANKRUPTCY NEWS is distributed on a subscription basis by
electronic mail and facsimile transmission for $45 per issue. New issues are
published on an ad hoc basis as significant activity occurs (generally every
10 to 20 days) in the Debtors' cases.
Chapman stated that one copy of today's first issue of ROCKEFELLER
BANKRUPTCY NEWS is available at no charge upon request.
Chapman further advised that, beginning this weekend, copies of key
Rockefeller press releases and other public documents will be available for
free from the InterNet Bankruptcy Library on an on-going basis at
Bankruptcy Creditors' Service, Inc., also publishes similar newsletters
tracking the on-going chapter 11 cases involving Olympia & York, R.H. Macy &
Co., Inc. (NYSE: FD), Woodward & Lothrop Incorporated, Merry-Go-Round
Enterprises, Inc. (NYSE: MGR), House of Fabrics, Inc. (NYSE: HF), Crystal
Brands, Inc. (NYSE: D.CBR), Eagle-Picher Industries, Inc. (OTCBBS: EPIH), and
The Grand Union Company.
/CONTACT: Peter A. Chapman of Bankruptcy Creditors' Service, Inc.,
609-924-8949, Fax: 609-924-8963, or
Mitsubishi Estate causes subsidiaries to file for bankruptcy;
Rockefeller Center Properties, Inc. demands the keys
NEW YORK, New York--May 11, 1995--Rockefeller Center Properties,
Inc. (RCPI, or the Company), announced today that the two partnerships that are the
Borrowers under the Company's $1.3 billion convertible mortgage loan have filed for protection
in New York under Chapter 11 of the Federal Bankruptcy Code.
The two partnerships -- RCP Associates and href="chap11.rcp.html">Rockefeller Center Properties --
are controlled by Mitsubishi Estate Co., Ltd. of Japan and Rockefeller Family
Rockefeller Center Properties, Inc.'s mortgage loan constitutes the
Company's principal asset, and, as a result of this filing, the Company's
ability to enforce its loan and its mortgage lien on Rockefeller Center has
Rockefeller Center Properties, Inc. president and chief executive officer,
Richard M. Scarlata responded to the filing by saying: "We think it is
unconscionable to attempt to take advantage of U.S. bankruptcy laws in light
of Mitsubishi Estate's significant assets including short-term assets of more
than $2 billion, and its announcement last week that it expects to have
current profits of almost $300 million in this fiscal year.
"While Mitsubishi Estate and the Rockefeller Family Interests have ample
financial resources at their disposal, the filing indicates that they are
unwilling to allow the Borrowers whom they control to meet their commercial
obligations to RCPI, thereby affecting more than 40,000 stockholders. As a
secured creditor of the Borrowers, however, RCPI will do everything in its
power to ensure continuation of efficient operations of the capital Property
and to safeguard the interests of its stockholders."
"When Mitsubishi Estate acquired its interest in Rockefeller Center in 1989,
Jotaro Takagi, then-president of Mitsubishi Estate, said: `We are making this
investment with the objective of continuing this tradition into the 21st
century, sharing with the Rockefeller family the vision of the center as a
very special place in New York City, and of the city itself as a world capital
of business and culture.'"
Scarlata added, "Mitsubishi Estate has apparently lost confidence in New
York City and in New York's most prestigious office address despite an
improving midtown real estate market. The decision to attempt to walk away
from that commitment should weigh heavily upon Mitsubishi Estate, which
continues to maintain significant property holdings in Tokyo despite the
protracted downturn of the real estate market in that city. However, we
expect Mitsubishi will conduct itself honorably and cooperate with us, to
protect the value of this important property and facilitate an orderly
transfer of ownership to us."
Rockefeller Center Properties, Inc. is a mortgage real estate investment
trust whose principal asset is a $1.3 billion participating convertible
mortgage loan to two partnerships (Rockefeller Center Properties and RCP
Associates), which jointly own Rockefeller Center and are 100%-controlled by
Rockefeller Group, Inc. (RGI). Mitsubishi Estate Company, Ltd. controls an
80% equity interest in RGI, and Rockefeller Family Interests hold the
CONTACT: Rockefeller Center Properties, Inc.
Stephanie Leggett Young, 212/698-1440