CLEVELAND, OH--Oct. 2, 1995--Cleveland-Cliffs
Inc announced today that McLouth Steel
Products Company, a
significant customer, petitioned for protection under Chapter 11 of
the U.S. Bankruptcy Code on September 29, 1995. Cleveland-Cliffs
has been informed that McLouth has debtor-in-possession financing
and intends to continue operations under its existing purchase
arrangements. Cleveland-Cliffs is continuing to ship to McLouth at
this time under satisfactory payment terms. McLouth has advised
that it is discussing modernization investments with potential
investors. Cleveland-Cliffs has also been informed that WCI Steel
Inc., another significant customer, is temporarily suspending
operations due to a labor strike.
McLouth and WCI represent approximately 13 percent and 10
percent respectively, of Cleveland-Cliffs' estimated 1995 products
and services revenue before these events. Cleveland-Cliffs has
unreserved McLouth receivables of $5.0 million that are a pre-
petition obligation, secured by liens on certain McLouth fixed
assets.
Future operating results would be adversely affected if
Cleveland-Cliffs' total sales declined due to McLouth or WCI
developments.
Cleveland-Cliffs Inc subsidiaries manage seven iron ore mines in
North America and Australia. The Company has equity interests in
six of the mines, holds a substantial iron ore reserve position in
the United States, is a major iron ore merchant, and is developing
production of direct reduced iron.
CONTACT: Cleveland-Cliffs Inc, Cleveland,
David L. Gardner, Manager, Public Relations, 216/694-5407
CHESTNUT HILL, Mass., Oct. 2, 1995--Safety 1st,
Inc. (Nasdaq:SAFT) today announced today that it has signed a
letter of intent to acquire EEZI, a U.K. based developer and
marketer of home safety products and baby accessories.
The purchase price will approximate $1.8 million in cash.
Existing EEZI owners have the opportunity to earn an additional $3.2
million in cash if certain profitability targets are met within a
five year period.
EEZI, with revenues of approximately $2.7 million in its fiscal
year ended March 31, 1995, is a developer and marketer of home
safety products and child care accessories and, like Safety 1st in
the U.S., produces innovative products with excellent price points.
EEZI, to be called, Safety 1st Europe, Ltd., will operate as a
separate division and will continue to be run by Steve Tollman, the
current Chief Executive Officer of EEZI.
Commenting on the acquisition, Michael Lerner, Chairman,
President, and Chief Executive Officer of Safety 1st, said, "The
addition of EEZI will create a solid leadership position for Safety
1st in Europe and will build on our existing strengths in product
offerings. Together, Safety 1st and EEZI will have a greater
distribution capacity and will enjoy the benefit of cross-marketing
all products throughout both companies' respective customer bases.
We are excited about the opportunity to work with EEZI management in
creating significant economies of scale and fully capitalizing on
the numerous synergies we believe can be achieved."
Consummation of the acquisition, expected to occur in the fourth
quarter of 1995, is subject to a number of closing conditions.
In a related announcement today, Safety 1st said that it expects
to record a non-recurring pretax charge of approximately $285,000 in
the third quarter ending September 30, 1995. The charge reflects a
write-down of receivables due to the Company from href="chap11.caldor.html">The Caldor
Corporation, which recently filed for bankruptcy under
Chapter 11.
The charge is expected to reduce net income by approximately $0.02
per share in the 1995 third quarter. For the third quarter of
fiscal 1994, the Company reported net income of $1.7 million, or
$0.25 per share, on revenues of $17.2 million.
Safety 1st is a leading developer, marketer and distributor of
child care products, including feeding, teething, health-hygiene and
convenience items. The Company currently distributes over 400
products to more than 3,700 retailers.
CONTACT: Michael Lerner,
Chairman, President and
Chief Executive Officer;
Rich Caturano, CPA,
Director of Financial Administration
(617) 964-7744
or
Naomi Rosenfeld/Eileen Howard/Stefanie King
Media Contact:
Lisa Bradlow,
Morgen-Walke Associates
(212) 850-5600
TORRANCE, Calif., Oct. 2, 1995 -- href="chap11.wherehouse.html">Wherehouse
Entertainment, Inc., operating as a debtor in possession under
Chapter 11 of the U.S. Bankruptcy Code, announced today that it has
obtained a $30 million revolving credit facility (including a letter
of credit subfacility of $10 million) from Bankers Trust Company.
The Bankruptcy Court has issued an Interim Order authorizing
borrowings of up to approximately $15 million under the facility,
pending an October 19, 1995 final Court hearing to approve the full
facility amount.
"We are pleased to have put this arrangement in place, which we
believe should assure adequate financing to support the company's
inventory acquisitions for the holiday selling season; furthermore,
placement of the credit facility will enable us to pursue credit
terms with our many music, video and special products suppliers,"
said Henry Del Castillo, Chief Financial Officer.
Wherehouse Entertainment, Inc., a large prerecorded home
entertainment retailer, operates 317 stores in Arizona, California,
Colorado, Nevada, North Dakota, Oregon, Utah and Washington.
/CONTACT: Henry Del Castillo, SVP and CFO of Wherehouse
Entertainment, 310-538-2314, Ext. 2350/