WARREN, Mich., Nov. 16, 1995 -- F & M
Distributors, Inc.,
a debtor in possession, announced that it will close its remaining
34 F & M super drugstore locations in Detroit, Chicago, Baltimore
and Washington, D.C. during the next ninety days after the
completion of inventory liquidation sales. After these closures the
Company will have completed the program previously announced in
August to market its business operations. The Company will continue
its warehouse operations for a limited time as it supplies
merchandise to twenty-three stores previously sold to Drug Emporium,
Inc. (Nasdaq-NNM: DEMP) which is continuing to operate these stores
in the Detroit and Baltimore markets. F & M will continue to market
owned real estate and lease interests as it completes its asset
liquidation.
F & M is managing its business as a debtor in possession under
Chapter 11 of the United States Bankruptcy Code. The Company
anticipates filing a plan of liquidation with the U.S. Bankruptcy
Court in early 1996. This plan would provide for the distribution
of amounts realized from the liquidation of the Company's assets to
creditors in accordance with priorities established under the United
States Bankruptcy Code. Although the amount of the distribution to
creditors cannot be determined at this time, it is unlikely that
holders of F & M senior subordinated notes due 2003 and shareholders
of the Company will receive a distribution.
/CONTACT: Laura Kendall, Chief Financial Officer of F & M ,
810-758-1400, Ext. 25l/
NEW YORK--November 16, 1995--The
Leslie Fay
Companies, Inc. today reported improved financial results for the
third quarter and first nine months of fiscal 1995.
For the 13 weeks ended September 30, 1995, Leslie Fay reported
operating income of $10.8 million on sales of $140.3 million,
compared with operating income of $1.4 million on sales of $171.0
million in the third quarter of fiscal 1994. After reorganization
costs of $10.7 million and $1.4 million for income taxes, Leslie Fay
reported net income of $0.8 million, or $0.04 per share, in the 1995
third quarter, compared with a net loss of $17.7 million, or $0.94
per share, in the same quarter of 1994 (after reorganization costs
of $17.6 million and a provision of $0.3 million for income taxes).
The sales decline of $30.7 million from the year ago quarter
reflects the absence of $35.9 million in sales from divisions that
were closed or divested in 1994. On a comparable basis, after
removing this impact, the remaining business had a net increase in
sales of $5.1 million, or 3.8 percent, in the third quarter of 1995.
For the 39 weeks ended September 30, 1995, Leslie Fay reported a
net loss of $14.7 million, or $0.78 per share, on sales of $366.7
million, compared with a net loss of $36.0 million, or $1.92 per
share, on sales of $429.3 million in the first nine months of 1994.
Separately, Leslie Fay today filed a disclosure statement and
amended plan of reorganization with the U.S. Bankruptcy Court for
the Southern District of New York. The company originally filed a
plan of reorganization with the court on October 31, 1995 and
intends to emerge from chapter 11 in early 1996. In a related
development, Leslie Fay has reached an agreement with its lenders,
subject to court approval, to extend its post-petition credit
agreement to June 1996. The company has also filed chapter 11
petitions for several retail outlet subsidiaries in order to resolve
the liability of those entities as part of the amended plan of
reorganization.
"We are very pleased with the company's progress on all fronts
-- particularly our ongoing actions to enhance profitability in our
core businesses," said John J. Pomerantz, chairman and chief
executive officer of Leslie Fay. "The filing of a disclosure
statement is an important step towards the conclusion of our chapter
11 case. We look forward to emerging from bankruptcy early next
year as a viable competitor in the women's apparel industry."
Founded in 1947, The Leslie Fay Companies, Inc., is one of the
nation's leading manufacturers of women's apparel, including
dresses, suits and sportswear. Its brand names include Leslie Fay,
Albert Nipon, Kasper for A.S.L., Castleberry, Outlander, and HUE.
The Leslie Fay Companies, Inc. and Subsidiaries
(Debtor In Possession)
Condensed Consolidated Financial Information
(In thousands, except per share data)
(Unaudited) (Unaudited)
Thirty Nine Weeks Thirteen Weeks Ended
Sept. 30, Oct. 1, Sept. 30, Oct. 1,
1995 1994 1995 1994
Statement of Operations
Data:
Net sales $366,653 $429,313 $140,290 $171,043
Operating income (loss) 4,858 (1,435) 10,782 1,424
Loss before taxes (15,573) (35,192) (612)
(17,366)
Taxes on loss (888) 838 (1,430) 284
Net loss (14,685) (36,030) 818
(17,650)
Net loss per share of
common stock ($0.78) ($1.92) $0.04
($0.94)
Weighted average common
shares outstanding 18,772 18,772 18,772 18,772
(Unaudited)
as of as of
Sept. 30, Dec. 31,
1995 1994
Balance Sheet Data:
Total assets $250,493 $290,997
Total liabilities 403,398 428,932
Stockholders' deficit (152,905) (137,935)
DENVER--Nov. 16, 1995--Forest Oil Corporation
reported today that it will receive $6,840,000 resulting from
yesterday's ruling by U.S. Bankruptcy Court Judge Helen Balik
confirming Columbia Gas System,
Inc.'s Chapter 11 reorganization
plans.
Forest expects to receive its cash distribution in December 1995
or January 1996. Forest may receive up to an additional $360,000
which represents a holdback amount attributable to the company's
allowed claim. As a result of this ruling, Forest expects to record
income of approximately $4,000,000.
After payments to third parties, including the repayment of a
participation interest in the Columbia claim, Forest expects to
realize net cash proceeds of at least $1.1 million.
Forest Oil Corporation is engaged in the exploitation and
acquisition of, exploration for and development and production of
natural gas and crude oil. The company's principal reserves and
producing properties are located in the Gulf of Mexico and Texas,
Oklahoma and Wyoming. The company's common and preferred stocks are
traded on the Nasdaq National Market System under the FOIL and FOILO
symbols, respectively.
CONTACT: Forest Oil Corp., Denver,
Zack Hager, 303/812-1610
SALT LAKE CITY, Nov. 16, 1995 -- href="chap11.bonneville.html">Bonneville Pacific
Corporation, through its Chapter 11 Bankruptcy Trustee (Roger G.
Segal), announces today that a settlement has been reached with two
related defendants of the numerous defendants in the civil action
entitled Roger G. Segal, Trustee v. Portland General, et al now
pending in the United States District Court for the District of
Utah, Case No. 92-C-364J.
The settlement is with Houlihan Dorton & Associates and Houlihan
Dorton James Nicolatus and Stuart, Inc. and provides for a payment
to Bonneville Pacific Corporation of the total sum of Five Hundred
Thirty-Three Thousand Two Hundred Sixty-Four and 99/100 Dollars
($533,264.99).
The settlement is conditioned upon approval by the United States
Bankruptcy Court for the District of Utah and the entry of an
appropriate dismissal order by the United States District Court.
/CONTACT: Roger G. Segal, Chapter 11 Trustee for Bonneville Pacific
Corporation, 801-532-2666/
TROY, Mich., November 16, 1995 -- Kmart Corporation
(NYSE: KM) today reported a net loss of $69 million, or $.15 per
share, in the third quarter of 1995, compared with net income of
$39 million, or $.08 per share, in the third quarter of 1994.
Discontinued operations in the third quarter of 1995 included a net
gain of $48 million, or $.11 per share, resulting from the sale of
the company's remaining interest in The Sports Authority, Inc.
Before giving effect to the impact of discontinued operations, the
net loss from continuing operations was $118 million, or $.26 per
share, in the third quarter of 1995, compared with net income from
continuing operations of $21 million, or $.04 per share, in the
third quarter of 1994.
Operating results were affected by aggressive clearance of
discontinued inventory, continued promotional activity, liquidating
closed stores, and shifts in the company's merchandise mix. Results
were also affected by weak performances at Builders Square and
Kmart's Canadian operation.
The gross margin for the third quarter was 21.2% of sales versus
24.4% last year, reflecting increased volumes of lower margin
promotional items and consumables. Margins were also significantly
affected by clearance of discontinued merchandise, continued higher
than estimated shrinkage, and the implementation of a new inventory
accounting system earlier this year.
Total sales in the third quarter were $7.98 billion, an increase of
2.5% from $7.78 billion for the third quarter of 1994.
Commenting on third quarter results, Floyd Hall, chairman, president
and chief executive officer, said, "Sales in our U.S. Kmart stores
increased 4.1% on a comparable store basis in the third quarter and
5.4% for the first nine months of 1995. In light of the current
retail environment, we consider this level of sales momentum to be
satisfactory. However, our gross margin shortfalls continue to be a
major problem."
"Throughout the year, we have made significant progress in clearing
unproductive discontinued inventory. In the first nine months of
1995, we eliminated over $500 million, at retail, of discontinued
goods and we anticipate that the impact on gross margin rate will
moderate during the fourth quarter."
The selling, general and administrative (SG&A) expense ratio for the
third quarter was 23.0% of sales versus 23.3% for the comparable
1994 period.
The pretax LIFO credit for the 1995 period was $7 million, compared
with $13 million for the 1994 third quarter. For the 39 week
periods, the pretax LIFO charge was $8 million in 1995 compared to
no charge in 1994.
Net loss, including discontinued operations, for the 39 weeks of
1995 was $151 million, or $.34 per share, compared with earnings of
$151 million, or $.32 per share, in the year-ago period. Results in
1995 were positively affected by $.18 per share due to the freezing
of the Kmart defined benefit pension plan and implementation of a
profit sharing program, and negatively affected by $.22 per share
due to a previously-announced new inventory accounting system.
Sales rose 5.4% to $23.86 billion from $22.64 billion for the same
period in 1994.
Kmart Corporation serves America with 2,167 Kmart and 168 Builders
Square retail outlets, and operates 147 stores internationally.
Kmart Corporation common stock is listed on the New York, Pacific,
and Chicago Stock Exchanges.
KMART CORPORATION
SALES AND OPERATING RESULTS BY BUSINESS
13 WEEKS ENDED OCTOBER 25, 1995 AND OCTOBER 26, 1994
(UNAUDITED)
SALES
% Change
All Comparable
(Millions U.S. $) 10-25-95 10-26-94 Stores Stores
General Merchandise
United States $ 7,012 $ 6,733 4.1 4.1
International 305 288 5.9 3.7 (a)
Total General Merchandise 7,317 7,021 4.2 4.1
Specialty Retail
Builders Square 658 762 (13.7) (11.1)
Total Kmart $ 7,975 $ 7,783 2.5 2.6
(a) International Comparable Store Sales Change is calculated on
sales in the applicable local currency.
OPERATING RESULTS
(Millions U.S. $) 10-25-95 10-26-94 % Change
General Merchandise
United States $ (81) $ 141 -
International 5 7 (28.6)
Total General Merchandise (76) 148 -
Specialty Retail
Builders Square (3) 1 -
Total Kmart $ (79) $ 149 -
KMART CORPORATION
SALES AND OPERATING RESULTS BY BUSINESS
39 WEEKS ENDED OCTOBER 25, 1995 AND OCTOBER 26, 1994
(UNAUDITED)
SALES
% Change
All Comparable
(Millions U.S. $) 10-25-95 10-26-94 Stores Stores
General Merchandise
United States $20,962 $19,593 7.0 5.4
International 850 773 10.1 3.8 (a)
Total General Merchandise 21,812 20,366 7.1 5.3
Specialty Retail
Builders Square 2,046 2,272 (10.0) (7.8)
Total Kmart $23,858 $22,638 5.4 4.1
(a) International Comparable Store Sales Change is calculated on
sales in the applicable local currency.
OPERATING RESULTS
(Millions U.S. $) 10-25-95 10-26-94 % Change
General Merchandise
United States $ 138 $ 476 (71.0)
International (10) 9 -
Total General Merchandise 128 485 (73.6)
Specialty Retail
Builders Square (5) 30 -
Total Kmart $ 123 $ 515 (76.1)
KMART CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
%
13 Weeks Ended Inc.
(Amounts in millions, except per share 10-25-95 10-26-94 (Dec.)
data)
Sales $7,975 $7,783 2.5
Licensee fees and other income 66 62 6.5
Gross revenue 8,041 7,845 2.5
Cost of merchandise sold 6,286 5,883 6.9
Selling, general and
administrative expenses 1,834 1,813 1.2
Interest - net
Debt 40 73 (45.2)
Capital leases and other 56 60 (6.7)
Income (loss) from continuing
operations
before income taxes and equity income (175) 16 -
Equity in net income of
unconsolidated companies 7 12 (41.7)
Income tax provision (credit) (50) 7 -
Income (loss) before discontinued
operations (118) 21 -
Income from discontinued operations,
net of income taxes 1 18 (94.4)
Gain on disposal of discontinued
operations, net of income taxes 48 - -
Net income (loss) ($ 69) $ 39 -
Earnings (loss) per common and common
equivalent share:
Income (loss) before discontinued
operations ($ 0.26) $ 0.04
Income from discontinued operations,
net of income taxes - 0.04
Gain on disposal of discontinued
operations, net of income taxes 0.11 -
Net income (loss) ($ 0.15) $ 0.08
Weighted average shares outstanding 460.1 456.8
KMART CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
%
39 Weeks Ended Inc.
(Amounts in millions, except per share 10-25-95 10-26-94 (Dec.)
data)
Sales $23,858 $22,638 5.4
Licensee fees and other income 187 195 (4.1)
Gross revenue 24,045 22,833 5.3
Cost of merchandise sold 18,618 16,999 9.5
Selling, general and
administrative expenses 5,428 5,319 2.0
Gain on pension curtailment (124) - -
Interest - net
Debt 152 197 (22.8)
Capital leases and other 167 176 (5.1)
Income (loss) from continuing
operations
before income taxes and equity income (196) 142 -
Equity in net income of
unconsolidated companies 23 32 (28.1)
Income tax provision (credit) (52) 54 -
Income (loss) before discontinued
operations (121) 120 -
Income (loss) from discontinued
operations,
net of income taxes (1) 31 -
Loss on disposal of discontinued
operations, net of income taxes (29) - -
Net income (loss) ($ 151) $ 151 -
Earnings (loss) per common and common
equivalent share:
Income (loss) before discontinued
operations ($ 0.28) $ 0.25
Income from discontinued operations,
net of income taxes - 0.07
Loss on disposal of discontinued
operations, net of income taxes (0.06) -
Net income (loss) ($ 0.34) $ 0.32
Weighted average shares outstanding 459.3 456.2
KMART CORPORATION
CONSOLIDATED BALANCE SHEETS
(Amounts in millions, except per share 10-25-95 10-26-94 1-25-95
data)
(Unaudited) (Unaudited)
ASSETS
Current Assets:
Cash (includes temporary investments
of $ 470 $ 375 $ 480
$178, $121 and $93, respectively)
Merchandise inventories 8,409 9,549 7,382
Accounts receivable and other current 1,695 1,961 1,325
assets
Total current assets 10,574 11,885 9,187
Investments in Affiliated Retail 80 649 368
Companies
Property and Equipment - net 5,900 6,399 6,280
Other Assets and Deferred Charges 508 654 910
Goodwill - net of accumulated
amortization of 25 698 284
$9, $73 and $45, respectively
TOTAL ASSETS $17,087 $20,285 $17,029
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Long-term debt due within one year $ 9 $ 249 $ 236
Notes payable 1,944 3,300 638
Accounts payable - trade 3,206 3,512 2,910
Accrued payrolls and other 1,046 1,289 1,313
liabilities
Taxes other than income taxes 304 418 272
Income taxes - 75 257
Total current liabilities 6,509 8,843 5,626
Capital Lease Obligations 1,704 1,865 1,777
Long-Term Debt 1,954 2,022 2,011
Other Long-Term Liabilities (includes
store 1,202 1,596 1,583
restructuring obligations)
Shareholders' Equity:
Preferred stock, 10,000,000 shares
authorized;
Series C, 790,287 shares authorized;
shares
issued 654,815, 784,938 and 131 157 132
658,315, respectively
Common stock, 1,500,000,000 shares
authorized; shares issued
465,251,468, 465 463 465
462,782,539 and 465,249,073,
respectively
Capital in excess of par value 1,514 1,484 1,505
Performance restricted stock deferred
compensation (6) (2) -
Retained earnings 3,752 4,035 4,074
Treasury shares (86) (88) (86)
Foreign currency translation (52) (90) (58)
adjustment
Total shareholders' equity 5,718 5,959 6,032
TOTAL LIABILITIES AND $17,087 $20,285 $17,029
SHAREHOLDERS' EQUITY
GRAND RAPIDS, Mich., Nov. 16, 1995 -- href="chap11.gantos.html">Gantos, Inc. (Nasdaq-
NNM: GTOS) today reported net income for the third quarter ended
October 28, 1995, of $127,000, or $0.02 per share, compared to a net
loss of $662,000, or ($0.25) per share, for the same period a year
ago.
Net income for the nine months ended October 28, 1995, was
$577,000, or $0.09 per share, compared to a net loss of $1,860,000,
or ($0.70) per share, for the same period a year ago.
Commenting on the Company's results, L. Douglas Gantos, Chief
Executive Officer and Chairman, stated, "We are pleased with the
nearly $800,000 positive earnings swing experienced in the third
quarter, particularly in light of the highly promotional women's
specialty apparel environment. Contributing to this improved
performance were higher margins, combined with lower general and
administrative costs. Our management team remains focused on our
long range plan of fresh merchandise assortments, exceptional
customer service and expense discipline as we enter the all-
important Holiday season."
Gantos, Inc. is a specialty retailer of quality women's wear and
accessories. The Company currently operates 113 stores in 23
states.
GANTOS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share and store data)
Unaudited
Third Quarter Ended Year-To-Date
Oct. 28, Oct. 29, Oct. 28, Oct. 29,
1995 1994 1995 1994
Net sales $42,068 $43,549 $136,733 $139,136
Cost of sales (including
buying, distribution and
occupancy costs) (33,448) (35,310) ($108,820) ($114,968)
Gross income 8,620 8,239 27,913 24,168
Selling, general and
administrative expense (9,037) (9,666) ($29,014) ($28,808)
Finance charge and
other revenue 1,037 1,113 $3,178 $3,634
Operating income (loss) 620 (314) 2,077 (1,006)
Interest expense (493) (32) ($1,221) ($91)
Income (loss) before
reorganization items
and income taxes 127 (346) $856 ($1,097)
Reorganization items:
Professional fees (755) ($530) ($2,031)
Interest earned on
accumulating cash from
Chapter 11 proceedings --- 439 $251 $1,268
Net reorganization items 0 (316) (279) (763)
Income (loss) before
income taxes 127 (662) $577 ($1,860)
Provision (benefit) for
income taxes --- --- --- ---
Net income (loss) $127 ($662) $577 ($1,860)
Per share amounts:
Net income (loss)
per share $0.02 ($0.25) $0.09 ($0.70)
Shares outstanding 7,600 2,665 7,600 2,665
Weighted average shares
outstanding 7,600 2,665 6,504 2,665
Stores open at end of
period 113 114 113 114
GANTOS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
Unaudited
Oct. 28, Oct. 29,
1995 1994
ASSETS
Current assets:
Cash and cash equivalents $1,790 $27,969
Accounts receivable (net) 22,975 25,226
Merchandise inventories 31,350 34,401
Prepaid expenses and other 2,760 3,503
Income tax receivable --- ---
Total current assets 58,875 91,099
Cash - restricted --- ---
Property and equipment (net) 18,458 18,255
Total assets $77,333 $109,354
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $17,987 $17,177
Accrued expenses and other 11,201 10,903
Current provision for facilities
closing 3,810 ---
Total current liabilities 32,998 28,080
Long-term debt 18,540 39
Long-term provision for
facilities closing 4,544
Liabilities subject to compromise 400 75,956
Shareholders' equity 25,395 735
Total liabilities and
shareholders' equity $77,333 $109,354
LONGMONT, Colo.--Nov. 16, 1995--href="chap11.rexon.html">Rexon Inc.
(NASDAQ:REXNQ) Thursday announced that it has received a term sheet
proposal from Legacy Storage Systems International Inc. ("Legacy")
to acquire substantially all of the assets of REXON and its
subsidiaries for total consideration of approximately $15 million
including the assumption of REXON's pre-petition secured debt of
approximately $5.7 million and the $4 million loan facility from
Legacy and REXON's management.
The balance of approximately $5.3 million would be available to
REXON's and REXON/Tecmar's bankruptcy estate for payment of
administrative and priority claims and a distribution to unsecured
creditors.
The proposal does not provide sufficient proceeds to satisfy the
claims of unsecured creditors that exceed $38 million, so a plan of
reorganization or other conclusion of REXON's bankruptcy
proceedings, which is based solely on this proposal, would not
include any distribution to REXON's shareholders.
Under the proposal, Legacy would acquire the stock of REXON's
Singapore subsidiary, with the intent of its operation and
production outside REXON's bankruptcy proceedings.
Legacy's proposal does not constitute an offer, and there can be
no assurance that the parties will reach agreement on this or any
other proposal or that any agreement between Legacy and REXON would
receive the necessary approval of the bankruptcy court. This
proposal is subject to numerous conditions, including Legacy's due
diligence examination and completion of any transaction by Feb. 21,
1996.
REXON manufactures and distributes 1/4-inch cartridge (QIC) tape
drives under the Wangtek brand name, digital audio tape (DAT) drives
under the WangDat brand name and Tecmar tape back-up solutions.
REXON distributes its tape back-up products through a direct field
sales force and an international network of distributors. REXON
also has OEM and VAR relationships with a number of the major
computer companies.
CONTACT: REXON Inc.,
J. Embry, 310/355-0761
NEW YORK, Nov. 16, 1995 -- The Honorable
James P. Garrity,
Jr. of the United States Bankruptcy Court, Southern District of New
York, today issued an order authorizing Edwin B. Mishkin of Cleary,
Gottleib, Steen & Hamilton, the SIPA Trustee for the liquidation of
the business of Adler, Coleman Clearing
Corp. to make a distribution
of customer property to customers of Adler, Coleman whose approved
claims have not been fully satisfied. To date, the Trustee has
distributed approximately $685 million of customer assets in
fulfillment of customer claims that fell within the limits of SIPC
protection. The Bankruptcy Court today authorized the Trustee to
distribute an additional $35 million to 206 customers whose approved
claims exceed SIPC protection. The distribution, in conjunction
with SIPC protection, will result in the complete satisfaction of
all but 25 of the 206 customers. Of the approximately 61,000
customers who had accounts at Adler, Coleman at the commencement of
the liquidation proceeding, over 98% will be satisfied in full.
/CONTACT: Thomas J. Moloney, 212-225-2460, or Mitchell A. Lowenthal,
212-225-2760, both of Cleary, Gottleib/