NORWALK, CONNECTICUT--September 18, 1995--href="chap11.caldor.html">The
Caldor Corporation (NYSE: CLD) today announced that as a
the recent downturn in retail sales and a decline in trade credit
support, it has filed a voluntary petition to seek
Chapter 11 of the Federal Bankruptcy Code.
The filing, which was made in the U.S. Bankruptcy Court for the
Southern District of New York, will enable the Company to conduct
business as usual while it implements a plan to reorganize and shore
up support among its vendors and other creditors.
Caldor expects to use all proceeds from its current inventory
and, in addition, has also obtained a $250 million debtor-in-
possession financing commitment from Chemical Bank. Subject to
court approval, these funds will enable the Company to meet future
inventory needs and to fulfill obligations associated with operating
its business, including the prompt payment of new vendor invoices.
Employees will receive salaries in the normal manner and benefits
programs will continue.
All 166 Caldor discount department stores are open today and
conducting business as usual.
Don Clarke, Chairman, said, "Caldor has a long history of
successful retailing and our organization has accomplished a great
deal in the past few years. Our business today is fundamentally
sound and we will continue to implement our strategy.
"Nevertheless, over the short term we have been confronted with
a very difficult retail environment, characterized by fierce
competition, weak sales, and exacerbated by other discount retailer
bankruptcies. This has substantially affected business conditions.
Even though Caldor for the last several years has achieved solid
financial performance and was in compliance with its bank covenants,
a portion of the vendor and factor community reacted to this
difficult environment, and to media reports and rumors, by reducing
its support. Although Caldor undertook wide-ranging efforts to
address these concerns, we were unable to consummate an acceptable
transaction within the time frame that would allow us to avoid
jeopardizing the all-important fourth quarter. Accordingly, we had
no recourse but to make this most difficult decision and seek
protection under Chapter 11.
"By seeking Chapter 11 protection and arranging for DIP
financing, we will be able to obtain and pay for a full inventory of
attractive goods and preserve our strong consumer franchise. We
look forward to emerging from Chapter 11 as soon as possible," he
As of July 29, 1995, the Company had consolidated assets
(unaudited) of approximately $1.2 billion, and consolidated
liabilities (unaudited) of approximately $883 million.
The Caldor Corporation is the fourth largest discount department
store chain in the U.S.,with annual sales of approximately $2.8
billion. It operates 166 stores in ten East Coast states. With a
strong consumer franchise in high-density urban/suburban markets,
Caldor offers a diverse merchandise selection, including both
softline and hardline products.
CONTACT: Media: Wendi Kopsick/Jim Fingeroth,
Kekst & Company: (212) 593-2655
David D. Peterson: (203) 849-2334