WILMINGTON, Del., Oct. 23, 1995 -- href="chap11.columbia.html">The Columbia Gas
System, Inc., (NYSE: CG) announced today its intent to sell
Gas Development Corporation, its wholly owned southwest U.S. oil and
gas exploration and production subsidiary.
Columbia Gas Development, headquartered in Houston, Texas, has
in excess of 200 billion cubic feet equivalent of proved oil and
natural gas reserves located in the Gulf of Mexico and on-shore
continental United States.
"With innovations like market hubs, futures trading and the
application of information technology in natural gas markets, the
strategic value to Columbia of drilling for oil and gas in the
Southwest has diminished," said Oliver G. "Rick" Richard III,
Chairman and CEO. "We would rather use our capital in the future to
expand the use of these technologies and new market mechanisms to
meet our customers' ever-diversifying needs."
Columbia said it expects to emerge from bankruptcy by the end of
the year. "As Columbia emerges from bankruptcy, we have an
opportunity to redefine ourselves strategically. We are employing
value-added criteria to assist us in this process. Southwest oil
and gas exploration doesn't serve our customer base as well as other
priorities. Consequently, Columbia needs to focus its energies and
capital expenditures elsewhere."
Columbia does not expect to leave the E & P business entirely
since it will retain ownership of Columbia Natural Resources, Inc.,
an exploration and production company located in the Appalachian
area. "Columbia Natural Resources' production is much closer to our
customers and is spread across our principal pipeline company 7/8s
service territory," noted Richard. "We see a better strategic fit
between Columbia Natural Resources and the rest of Columbia's
Columbia Gas has retained the investment banking firm of Salomon
Brothers Inc. to advise it in connection with the possible sale.
The Columbia Gas System, Inc., is one of the nation's largest
natural gas systems. Its subsidiaries are engaged in all aspects
of the natural gas market, from production through the storage,
transmission, and distribution of natural gas, as well as the
generation of electricity. Columbia Gas serves, directly or
indirectly, more than eight million energy users in 15 states and
the District of Columbia.
/CONTACT: H.W. Chaddock, 302-429-5261, or W.R. McLaughlin,
302-429-5443, or (financial), T.L. Hughes, 302-429-5363, or K.P.
302-429-5471, all of Columbia Gas/
COLUMBUS, Ohio, Oct. 23, 1995 -- Drug Emporium, Inc.
(Nasdaq: DEMP) announced today that it has reached an agreement to
acquire 18 of the F&M Distributors,
Inc. stores in Detroit,
Michigan, and four F&M stores in Baltimore, Maryland. The agreement
is subject to approval of the bankruptcy court where F&M's case is
David L. Kriegel, Drug Emporium's chairman and chief executive
officer, said, "This is a unique opportunity to combine these F&M's
stores with Drug Emporium's buying power and systems. The Detroit
stores will be operated under the F&M name which has a tradition
that goes back 40 years and we expect these stores to contribute to
earnings after the first full year of operation." He noted that the
transaction involves an estimated purchase price of $39 million,
financed through internal cash sources and bank borrowing, and that
the actual number of stores to be operated depends upon lease
Mr. Kriegel added, "We are excited to be able to grow our store
base and to add Detroit to our national presence. We believe our
new customers will be pleased with our strong dedication to
providing low- cost pharmacy prescriptions, wide acceptance of
prescription plans, great selection of health and beauty aids and
Drug Emporium, Inc., is a national chain of 117 company-owned
stores specializing in competitively priced health and beauty aids,
cosmetics, greeting cards and prescription drugs. The company also
franchises an additional 94 Drug Emporium stores.
/CONTACT: Timothy S. McCord, CFO, Drug Emporium, Inc.,
614-548-7080, ext. 207 or Investor Relations, 614-548-7080, ext.
WARREN, Mich., Oct. 23, 1995 -- F & M
a debtor in possession, today announced it has reached an agreement
to sell to Drug Emporium, Inc. (Nasdaq-NNM: DEMP) the assets of
twenty-three (23) F & M stores located in the Detroit, Michigan and
Baltimore, Maryland metropolitan areas. The sale is subject to U.S.
Bankruptcy Court approval in early November.
After consummation of the sale, F & M will operate thirty-four
(34) super drugstores located in the Baltimore, Chicago, Detroit and
Washington D.C. metropolitan areas. The Company will continue to
seek purchasers for the remainder of these business operations.
F & M 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.
Stores To Be Sold To Drug Emporium
.. 280 W. Nine Mile, Ferndale, Mich.
.. 30777 Gratiot Ave., Roseville, Mich.
.. 13555 Eureka Rd., Southgate, Mich.
.. 13505 Middlebelt Rd., Livonia, Mich.
.. 22200 Michigan Ave., Dearborn, Mich.
.. 27690 Van Dyke, Warren, Mich.
.. 1260 Rochester Rd., Rochester Hills, Mich.
.. 1700 Dix Ave., Lincoln Park, Mich.
.. 30100 Grand River Ave., Farmington Hills, Mich.
.. 18859 E. Nine Mile Rd., Eastpointe, Mich.
.. 3533 N. Woodward, Royal Oak, Mich.
.. 1403 Merritt Blvd., Dundalk, Md.
.. 801 Goucher Blvd., Towson, Md.
.. 6501 Baltimore Nat'l Pike, Baltimore, Md.
.. 570 Baltimore Pike, Bel Air, Md.
.. 7317 Ritchie Highway, Glen Burnie, Md.
.. 2105 S. Telegraph Rd., Bloomfield Hills, Mich.
.. 288 John R., Troy, Mich.
.. 29088 Southfield Rd., Southfield, Mich.
.. 31005 Orchard Lake Rd., Farmington Hills, Mich.
.. 35715 Warren Rd., Westland, Mich.
.. 14545 Racho Rd., Taylor, Mich.
.. 35630 Van Dyke, Sterling Heights, Mich.
/CONTACT: Laura Kendall, Chief Financial Officer of F & M,
810-758-1400, Ext. 251/
CHICAGO, Illinois--October 23, 1995--href="chap11.hastings.html">The Hastings Group,
Inc. today announced that, due to the sustained downturn in the
men's tailored clothing business, it has filed a voluntary petition
for protection under chapter 11 of the Federal Bankruptcy Code. The
filing, which was made in the U.S. Bankruptcy Court for the
District of Delaware in Wilmington, will enable Hastings to maximize
the value of the company for its creditors.
Based in Chicago, The Hastings Group, Inc. owns and operates a
chain of 50 retail stores in 19 states which sell an upscale line of
men's and women's tailored clothing and sportswear. The company was
recently acquired by CHJ Acquisition Co., a private investor group.
Hastings intends to use the chapter 11 process to significantly
pare down its operations through substantial cost-cutting measures,
including staff reductions at the corporate and store levels and
closures of some store locations. In addition, the company may sell
a small core of profitable locations.
"As a result of the extremely difficult conditions in the retail
industry nationwide, particularly in the men's tailored clothing
business, we have concluded that a voluntary chapter 11 filing is in
the best interest of the company and its creditors," said Michael
Zaccaro, Chairman and Chief Executive Officer of The Hastings Group.
The Hastings Group, Inc. acquired its stores from HSSI, Incorporated
in August 1994. At the time of the acquisition, HSSI was itself
involved in chapter 11 proceedings pending in the U.S. Bankruptcy
Court for the Northern District of Illinois.
"When Hastings acquired the stores last year, we recognized that
a turnaround would be a difficult task inasmuch as the business had
suffered several years of contraction and a serious erosion of its
customer base," Mr. Zaccaro said. "Nonetheless, we were confident
that with new management, a fresh infusion of capital, and 18 months
to two years of hard work, the business could be revitalized either
on a stand-alone basis or in combination with another business.
"Unfortunately, the loss of customer support proved to be
greater than anticipated and the protracted recession in the apparel
industry prevented us from rebuilding our customer base to viable
CONTACT: Michael Freitag or
Kekst and Company
TORRANCE, Calif., Oct. 23, 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 the
full $30 million revolving credit facility arranged earlier in the
month with Bankers Trust Company was approved by the Bankruptcy
Court at the previously announced hearing held October 19, 1995. As
previously reported, the Bankruptcy Court had earlier issued an
Interim Order authorizing borrowings of up to $15 million pending
approval of the full facility amount now in place.
"We are pleased with having concluded this financing
arrangement. The Court's action in approving availability of the
full facility will now enable us to further continue our progress in
arranging open credit terms with our many suppliers," said Henry Del
Castillo, Chief Financial Officer.
Wherehouse Entertainment Inc., a major prerecorded home
entertainment and software retailer, operates 317 stores in Arizona,
California, Colorado, Nevada, North Dakota, Oregon, Utah and
/CONTACT: Henry Del Castillo, SVP and CFO of Wherehouse,
310-538-2314, ext. 2350/
Vendors from Los Angeles, Riverside, San Bernardino, San Diego and
Orange counties must file a Proof of Claim
o Vendors with questions should call 714/540-5351
SANTA ANA, Calif.--Oct. 23, 1995--Vendor
companies seeking to recover money owed them by bankrupt href="chap11.orange.html">Orange
County have been given a Dec. 1, 1995 deadline to file a Proof of
Claim. Claims not submitted by that time may be forfeited.
A "vendor company" is a business or individual that provided
goods and/or services to the County of Orange prior to its
bankruptcy filing. According to Mary Ann Schulte, chair of the
vendors subcommittee, companies from Los Angeles, Riverside, San
Bernardino, San Diego and Orange counties are impacted by the
bankruptcy and need to fill out the Proof of Claim form sent to them
by Orange County.
Even if they have previously sent in a claim, vendors should use
the County claim forms because they include creditor numbers the
County will use to cross-reference through its accounting system.
More than 50,000 Proof of Claim forms were mailed by the County
in an effort to reach all vendors. The quantity has resulted in
some vendors receiving more than one.
Vendors should include copies of invoices and any other type of
proof that substantiates the amount of their claim. They can either
personally deliver the claim to the United States Bankruptcy Clerk
(located at 34 Civic Center Plaza, Room 506, Santa Ana), or mail it
via certified mail to: Clerk, United States Bankruptcy Court, 34
Civic Center Plaza, Room 506, Santa Ana, Calif. 92701.
Vendors should include an extra copy of their completed Proof of
Claim form and request a "conformed" copy, which means a photo copy
that is dated and marked "FILED" by the court clerk and then
returned to the claimant. If mailing the claim, provide a self-
addressed, stamped envelope.
Schulte said other details involved in filing a Proof of Claim
can be confusing, including vendor classification, documents that
should accompany the claim and changes in original claim amounts.
For more information or detailed instructions, vendors should call
Mary Ann Schulte at 714/540-5351.
CONTACT: Sukut Construction,
Mary Ann Schulte, 714/540-5351
Laer Pearce & Associates,
Randee Lennertz, 714/753-1111