ST. LOUIS, Missouri--Nov. 3, 1995--href="chap11.edison.html">Edison Brothers Stores, Inc.
(NYSE: EBS) said today that it has filed to reorganize under Chapter
11 of the Bankruptcy Code. At the same time, the company said that
it has arranged for $200 million of debtor-in-possession (DIP)
financing from BankAmerica Business Credit, which the company
believes will provide adequate funding for operations throughout the
Chapter 11 period.
Alan D. Miller, Edison's chairman, said, "We need to make
dramatic changes to preserve our business. The specialty retail
environment remains very difficult, and the recovery we had hoped to
see this fall has not materialized. Moreover, we do not expect to
see a quick fashion shift that will significantly increase regular-
price sales, and the outlook for the holiday selling season is not
good at this point. Additionally, it is essential that we be able to
rely on a steady flow of merchandise going forward.
"After intensive evaluation of our current circumstances, we are
convinced that we must make use of Chapter 11 in order to accomplish
our restructuring," Mr. Miller said.
Mr. Miller announced a number of key elements of the company's
Mr. Miller said he believes the company will receive the support
of its suppliers during the reorganization period, adding that,
while federal law prohibits the company from paying for goods
received before the filing, payment for goods and services received
after the filing is given priority status by the court.
The company's daily operations will continue as usual, and store
hours will remain the same. The company says that it expects
policies regarding returns, exchanges, layaways, gift certificates
and credit cards to remain unchanged. Similarly, sales associates
and other employees will continue to be paid as if no filing had
Edison Brothers Stores employs approximately 23,000 people in
2,700 retail apparel and footwear stores and entertainment centers
in 50 states, Puerto Rico, the U.S. Virgin Islands, Mexico and
Canada. An additional 1,750 are employed at the company's
headquarters in St. Louis; distribution centers in California,
Georgia, Indiana and Missouri; and international buying offices.
The company filed its Chapter 11 petition in the U.S. Bankruptcy
Court in Wilmington, Delaware.
/CONTACT: Sandra Sternberg, 314-331-6552,or Rivian Bell,
310-788-2850, both of Sitrick and Company/
VANCOUVER, British Columbia--Nov. 3, 1995--href="internat.canada.modatech.html">Modatech [Systems, Inc.]
today announced its assignment pursuant to the Bankruptcy
and Insolvency Act of Canada.
Due to financial difficulties, the Company is no longer able to
meet its obligations generally as they become due. The Company has
made an assignment pursuant to the Bankruptcy and Insolvency Act of
Canada, and has assigned Barnes & Kissack Inc. as trustee in
Revenues for the third quarter ended August 31, 1995 were
$1,384,037 compared to third quarter revenues in 1994 of $1,162,933,
but are down from second quarter revenues ending May 31, 1995. The
Company recorded a net loss of $1,825,444, or $0.15 per share in the
third quarter of fiscal 1995, compared with a net loss of
$8,570,312, or $0.78 for the same period last year. These losses
continue to erode the Company's cash and liquidity position.
On October 6, 1995, the Company announced it had entered into a
letter of intent to acquire TGI Technologies Ltd. for the sum of $2
million by issuing 5,000,000 shares at $0.40 per share. The due
diligence process has concluded, and the acquisition has been
cancelled. In conjunction with this cancellation, John McDemott has
resigned as Chief Executive Officer of Modatech Systems.
CONTACT: Barnes & Kissack Inc.,
Steve Barnes, 604/682-2774
MINNEAPOLIS, Nov. 3, 1995 -- North Atlantic
Inc. today reported a loss for its third quarter ended September 30,
1995 of $512,000 or $0.21 per share, compared with earnings of
$31,000 or $0.01 per share for the same period last year. Sales for
the third quarter were $465,000, compared with $1,938,000 in the
third quarter of 1994.
For the nine months ended September 30, 1995, sales were
$3,217,000 versus $5,875,000 for the first nine months of 1994. A
net loss of $1,413,000 or $0.59 per share was recorded compared to
earnings of $273,000 or $0.11 per share for the same period in 1994.
This Company continues to struggle in a very sluggish market for
its products. The domestic U.S. market remains stagnant and major
international projects continue to experience delays. These factors
have resulted in significant reductions in the Company's
manufacturing operations over the past six months. The most
significant factor in the Company's disappointing results has been
the delay of four major projects originally committed to the Company
with scheduled order placement dates between November of 1994, and
February of 1995. These projects have not yet materialized into
The Company's continuation as a going concern is in question and
is dependent on raising additional cash, or entering into other
arrangements, to meet significant obligations coming due on November
15, 1995, and January 2, 1996. Cash to meet those obligations
appears unlikely to be available, and may force the Company to
default on certain obligations and to seek protection from creditors
under bankruptcy laws or liquidate.
North Atlantic Technologies, Inc. manufactures heat recovery
systems which it sells worldwide to industrial companies for energy
recovery and environmental control applications. Its headquarters
are in Bloomington, Minn. and its manufacturing facilities are in
St. Paul, Minn. The common stock of North Atlantic Technologies,
Inc. is traded in the local over-the-counter market.
NORTH ATLANTIC TECHNOLOGIES, INC.
Condensed Statement of Operations:
(000s except per share amounts)
Three Months Ended Nine Months Ended
September 30 September 30
1995 1994 1995 1994
Sales $465 $1,938 $3,217 $5,875
Cost of Sales 429 1,415 2,796 4,468
Gross Profit 36 523 421 1,407
Operating Costs (419) (403) (1,341) (1,187)
Other Income (Expense) (129) (88) (493) 60
Income (Loss) Before
for Income Taxes (512) 32 (1,413) 280
Provision for Income Taxes -- (1) -- (7)
Net Income (Loss) $(512) $31 $(1,413) $273
Net Income (Loss) Per
Common and Common
Equivalent Share: $(.21) $.01 $(.59) $.11
Average Common and
Shares Outstanding 2,392,689 2,392,689 2,392,689 2,392,689
MILWAUKEE, Nov. 3, 1995 -- Allis-Chalmers
today reported a net loss of $402,000, or $.40 per common share, in
the third quarter of 1995 compared with a net loss of $3,260,000, or
$3.22 per common share, in the same quarter of 1994. The 1994 third
quarter loss included a loss from discontinued operations of
$137,000 or $.13 per common share and a loss of $2,808,000 or $2.78
per common share on the sale of the Company's molded fabric products
The 1995 third quarter loss included a non-cash expense of
$267,000 for pension expense on the unfunded liability of
approximately $10.0 million associated with the Company's pension
plan. This expense was $160,000 in the third quarter of 1994.
Sales in the third quarter of 1995 were $770,000 compared with
$832,000 in the 1994 period. The decrease in sales from the prior
year is primarily the result of a weakened market for machinery
repair and services. Third quarter gross margin, as a percentage of
sales, was 22.7% in 1995 and 29.7% in 1994.
For the first nine months of 1995, Allis-Chalmers incurred a net
loss of $1,194,000, or $1.18 per common share, versus a net loss of
$3,902,000, or $3.86 per common share, in the same period of 1994.
The 1994 loss included a loss from discontinued operations of
$344,000, or $.34 per common share and a loss on the sale of the
molded fabric products division of $2,808,000 or $2.78 per common
share. Sales in the first nine months were $2,392,000 in 1995 and
$2,655,000 in 1994.
Regarding the previously reported underfunding of the Company's
pension plan, the Company has recorded a liability of $10.0 million
resulting in a deficit in shareholders' investment. This
underfunding requires the Company to make significant cash
contributions to the pension plan pursuant to ERISA minimum funding
requirements starting in 1996. Minimum cash contributions are
estimated to be $2.5 million in 1996, $3.1 million in 1997 and $8.1
million in 1998.
Based on the Company's limited financial resources, this
requirement for contributions will have a material adverse effect on
the Company and a termination of the pension plan will likely occur.
If the Company is unable to reach an acceptable arrangement with the
Pension Benefit Guaranty Corporation or to raise additional capital,
it will have to evaluate its alternatives, which include, among
others, another bankruptcy filing.
Financial results for the three and nine month periods ended
September 30, 1995 and 1994 follow:
Three Months Nine Months
1995 1994 1995 1994
(thousands, except per share)
Sales $ 770 $ 882 $ 2,392 $ 2,655
Continuing Operations $ (402) $ (315) $(1,194) $ (750)
Discontinued Operations --- (2,945) --- (3,152)
Net loss $ (402) $(3,260) $(1,194) $(3,902)
Average common shares
outstanding 1,003 1,003 1,003 1,003
Loss per common share:
Continuing Operations $ (.40) $ (.31) $ (1.18) $ (.74)
Discontinued Operations --- (2.91) --- (3.12)
Net loss per common share $ (.40) $ (3.22) $ (1.18) $ (3.86)
NEW YORK--Nov. 3, 1995--Standard & Poor's will
replace Edison Brothers Stores,
Inc. (EBS) in the S&P MidCap 400
Index with Apria Healthcare Group (APRA) after the close of trading
on Monday, November 6, 1995. Edison Brothers Stores filed a
voluntary Chapter 11 bankruptcy petition in federal court this
Apria Healthcare Group, headquartered in Fountain Valley,
California, is one of the nation's largest fully integrated
providers of home health care services and products. The company
will be added to the S&P MidCap 400 Health Care Services industry
The Equity Services Group of Standard & Poor's, a division of
the Financial Information Services Group of The McGraw-Hill
Companies, provides financial, economic, and investment information,
as well as analytical services, to the global financial community
and commodity trading markets.
The S&P Equity Services Group calculates and maintains the S&P
500, S&P MidCap 400, S&P SmallCap 600, and the S&P Super Composite
1500 stock price indexes, which are widely considered key barometers
of stock market activity and performance benchmarks for professional
money managers. More than $300 billion is currently indexed to the
S&P 500. Company additions and company deletions from the S&P
equity indexes do not in any way reflect an opinion on the
investment merits of the company.
CONTACT: Elliot Shurgin,
V.P., Index Products & Services,
Director, Index Products & Services,
SECAUCUS, N.J.--Nov. 3, 1995--The U.S.
Bankruptcy Court for the Southern District of New York today
approved Gordon Brothers Partners, Inc. as href="chap11.jamesway.html">Jamesway Corporation's
agent for conducting "going-out-of-business" sales. In an auction
held in court today, Gordon Brothers agreed to pay Jamesway 53% of
the total retail value of Jamesway's inventory.
Beginning immediately, Jamesway stores will be marking down
prices on all categories of merchandise, including apparel,
appliances, sporting goods, toys, housewares, hardware, and health
and beauty aids. The company will be aggressively promoting the
sales, which will last until all merchandise has been sold. The
company expects that it will have sold its entire inventory by
On Monday, Jamesway and Gordon Brothers will begin an inventory
of the company's merchandise to establish its total retail value.
Michael J. Sherman, Executive Vice President-Special Projects,
said "We are very pleased to have secured such a favorable return
for Jamesway's creditors and equity holders. Now, we plan to begin
offering substantial discounts during going-out-of-business sales
which will soon begin at all stores."
CONTACT: Jim Fingeroth/Jason Lynch,
Kekst and Company
Marks Firm's Third Significant Return to Creditors in Four Months
BOSTON, Nov. 3, 1995 -- Gordon Brothers
Partners, Inc., a
retail restructuring and finance company, announced today that it
has been named agent by the United States Bankruptcy Court for the
Southern District of New York for href="chap11.jamesway.html">Jamesway Corporation for the
liquidation of its inventory. In a hearing held earlier today,
Gordon Brothers was awarded the contract in a competitive bidding
process which resulted in the creditors receiving $4.5 million more
than the amount of an earlier bid accepted by Jamesway. Gordon
Brothers will pay the Jamesway estate in excess of $100 million.
Gordon Brothers intends to conduct closing sales for the discount
retailer, headquartered in Secaucas, NJ, beginning immediately with
staggered closing dates over the next several weeks.
"This marks the third time in recent months that Gordon
Brothers has brought substantial value to the creditors of major
retail institutions," said Robert Sager, president of Gordon
Brothers. The company is currently liquidating the assets of
Woodward & Lothrop and advanced more than $100 million for that
inventory. In addition, Gordon Brothers recently partnered with
Oshman's Sporting Goods, Inc., in its acquisition of the SportsTown,
Inc., stores in Texas. "Because of our understanding of the retail
value of inventory and merchandising, we can provide maximum value
to the parties involved," said Sager.
Jamesway operates 92 stores in New Jersey, New York,
Pennsylvania, Delaware, Maryland, Virginia and West Virginia. The
expected retail value of the Jamesway inventory will be
approximately $227 million.
Since 1903, Boston-based Gordon Brothers has assisted retailers
with mergers and acquisitions, strategic downsizings, and store
relocation programs. In addition, it is the only company in the
country that provides working capital financing exclusively to
retailers. In the past two years, Gordon Brothers has managed over
2,000 stores and converted several billion dollars worth of
inventory into cash for companies across the U.S. and Canada,
including five of the nation's top 10 non-food retailers.
/CONTACT: Linn Parrish of Cone Communications, 617-227-2111, or
Elizabeth Wicks of Gordon Brothers, 617-422-6299/