SHERMAN OAKS, California--Sept. 15, 1995--href="chap11.hf.html">House of Fabrics,
Inc. (NYSE: HF) said today that, as anticipated, problems
related to
merchandise shortages and the closing of more than 270 stores since
July 31, 1994, continued to result in losses for the company.
House of Fabrics reported that for the quarter ended July 31,
1995, it had sales of $71.9 million, compared with sales of $110.1
million during the comparable period the previous year. According
to the company, the decrease was due to store closings and a decline
in store- for-store sales of 14 percent. The company said that the
decrease had been projected as part of the its plan to discontinue
its highly promotional sales strategy in favor of the chain-wide
implementation of everyday value pricing. Additionally, House of
Fabrics said that the chain experienced a significant loss of
continuing customers as a result of merchandise shortages.
For the six-month period ended July 31, 1995, the company
reported sales of $145.7 million as contrasted to sales of $224.8
million in the same period for the prior year.
At the same time, the company said that gross profit as a
percentage of sales continues to increase as a result of the chain-
wide implementation of everyday value pricing. For the three
months ended July 31, 1995, the company reported that gross profit
increased to 42.9 percent from 41.2 percent for the prior year
period. For the six months ended July 31, 1995, gross profit as a
percentage of sales increased to 46.5 percent from 43.5 percent for
the prior year period.
"We have changed the way we do business as a retailer," said
Gary L. Larkins, House of Fabrics president and chief executive
officer. "We have discontinued heavy discounting in favor of
stronger margins from everyday low pricing. The anticipated drop in
sales is a short-term result of our new strategy, and we are
actually slightly ahead of plan relative to performance.
"With new inventory available and everyday value pricing fully
implemented chain wide, we expect to realize greater sales volume in
the second half of the year, traditionally the company's heaviest
selling season," Mr. Larkins said.
The company reported a net loss for the second quarter of fiscal
1996 of $11.0 million, or $0.81 per share, contrasted with a net
loss of $11.6 million, or $0.85 per share, for the same period in
fiscal 1995. Per share earnings for the quarter are based on
13,697,107 weighted average shares outstanding, which is the same
number of weighted average shares outstanding in the comparable
period a year earlier.
For the six months ending July 31, 1995, the company reported a
net loss of $19.0 million, or $1.39 per share, contrasted with a net
loss of $13.1 million, or $0.96 per share, for the same period in
fiscal 1995. Per share earnings for the quarter are based on
13,697,107 weighted average shares outstanding, which is the same
number of weighted average shares outstanding in the comparable
period a year earlier.
On August 31, 1995, the company announced that it had filed a
plan of reorganization with the Bankruptcy Court and expected to
successfully emerge from Chapter 11 this fiscal year, which ends
January 31, 1996.
House of Fabrics operates 363 continuing Company-owned House of
Fabrics, Sofro Fabrics, Farbricland and Fabric King retail fabric
and craft stores in 34 states and employs approximately 8,600
people. The Company and its subsidiaries filed to restructure under
Chapter 11 on November 2, 1994.
Consolidated Statements of Operations (Unaudited)
House of Fabrics, Inc. and Subsidiaries
(Debtors-in Possession)
For the Three Months Ended July 31,
1995 1994
Sales $71,909,000 $110,114,000
Expenses:
Cost of Sales 41,056,000 64,784,000
Selling, General
and Administrative 36,322,000 53,686,000
Interest 3,597,000 3,766,000
Total Expenses $80,975,000 $122,236,000
Loss Before Income
Taxes (Benefit) and
Reorganization Costs (9,066,000) (12,122,000)
Reorganization Costs 1,923,000 ---
Loss Before Income
Taxes (Benefit) (10,989,000) (12,122,000)
Income Taxes (Benefit) 50,000 (474,000)
Net Loss $(11,039,000) $(11,648,000)
Loss Per Share $(0.81) $(0.85)
Weighted Average Number
of Shares Outstanding 13,697,107 13,697,107
Consolidated Statements of Operations (Unaudited)
House of Fabrics, Inc. and Subsidiaries
(Debtors-in Possession)
For the Six Months Ended July 31,
1995 1994
Sales $145,668,000 $224,809,000
Expenses:
Cost of Sales 77,931,000 126,952,000
Selling, General and
Administrative 73,690,000 105,463,000
Interest 7,525,000 6,454,000
Total Expenses $159,146,000 $238,869,000
Loss Before Income
Taxes (Benefit) and
Reorganization Costs (13,478,000) (14,060,000)
Reorganization Costs 5,445,000 ---
Loss Before Income
Taxes (Benefit) (18,923,000) (14,060,000)
Income Taxes (Benefit) 100,000 (942,000)
Net Loss $(19,023,000) $(13,118,000)
Loss Per Share $(1.39) $(0.96)
Weighted Average Number
of Shares Outstanding 13,697,107 13,697,107
/CONTACT: Sandra Sternberg of Sitrick and Company 310-788-2850/
DALLAS, Texas--Sept. 15, 1995--Centex Corporation (NYSE: CTX)
said today that in response to certain negotiations between various
noteholders and a potential bider, it has submitted an amendment to
its Securities Purchase Agreement with href="chap11.vista.html">Vista Properties, Inc. (OTC:
VTPY-A), to provide aggregate consideration of $115.0 million to
Vista's noteholders and stockholders.
Vista filed its prepackaged restructuring plan (the Plan) with
the Bankruptcy Court on August 17 and has a scheduled confirmation
hearing for the Plan on Sept. 19, 1995. If confirmed by the Court
on Sept. 19, the Plan proceedings should be completed in early
October 1995.
Centex retains its continuing right to increase its
consideration in response to any Qualified Overbids for Vista.
Centex said it is committed to the consummation of the
acquisition which it undertook in December 1994 when Centex executed
the initial Securities Purchase Agreement as part of Vista's
restructuring plan. Centex currently owns 4 percent of Vista's
common stock.
Centex Corporation, through its subsidiaries, is the nation's
largest builder of single-family detached homes, a leading mortgage
retail originator and general building contractor, and owns a 49
percent equity interest in a construction products company.
/CONTACT: David W. Quinn, executive vice president and chief
financial officer, or Sheila E. Gallagher, vice president
- corporate
communications of Centex Corporation, 214-559-6500/
SOUTHFIELD, Michigan--Sept. 15, 1995--href="dir.firm.bahadur.balan.html">Bahadur, Balan &
Kazerski Ltd., a leading turnaround management firm
experienced in
bankruptcy matters, has been retained to assist href="chap11.speaker.html">Speaker, Hines &
Thomas, a Lansing-based printing firm, which today filed for
protection under Chapter 11 of federal bankruptcy laws.
Speaker, Hines & Thomas filed in U.S. Bankruptcy Court in Grand Rapids.
BBK Principal B.N. Bahadur has been named interim CEO of
Speaker, Hines & Thomas. "We look forward to working closely with
Speaker, Hines & Thomas," Bahadur said. "We will quickly have a
program up and running to move past Chapter 11 and toward a long and
bright future for the company."
Speaker, Hines & Thomas, founded in 1884, has 107 employees and
reported $15.8 million in 1994 sales. Thomas W. Schouten of Dunn,
Schouten & Snoap has been retained as special counsel for Speaker,
Hines & Thomas.
Bahadur, Balan & Kazerski is a premier, Southfield, Michigan-
based turnaround management firm serving clients in the automotive,
retail, health care and manufacturing industries. Clients include
original equipment manufacturers and secured lenders.
/CONTACT: Dan Calabrese, 313-567-5070, or Jack Seamonds,
313-567-5005, both of Franco Public Relations Group/