TCR_Public/960215.MBX BANKRUPTCY CREDITORS' SERVICE, INC.


Bankruptcy News For - February 15, 1996



  1. MELVILLE REPORTS 1995 FORTH-QUARTER AND FULL YEAR RESULTS
  2. ANACOMP REACHES CONSENSUAL AGREEMENT-IN-PRINCIPLE ON FINANCIAL RESTRUCTURING
  3. CONSEP, INC. REPORTS FOURTH QUARTER AND YEAR END RESULTS
  4. PIC 'N PAY STORES, INC. FILES VOLUNTARY CHAPTER 11 PETITION
  5. TODAY'S MAN INC. TO OPEN SHOE DEPARTMENTS IN 9 STORES



Melville reports 1995 fourth quarter and full year results


            RYE, N.Y. -- Feb. 15, 1996 -- Melville Corp.
        (NYSE:MES), one of the nation's largest specialty retailers,
        reported today its results for the fourth quarter and full year
        ended Dec. 31, 1995.
        


            Total net sales, inclusive of discontinued operations, for the
        fourth quarter of 1995, which had one more selling day than the
        fourth day of 1994, decreased 6.0% from sales of $3.7 billion for
        the comparable period last year to $3.4 billion this year.  Sales
        for the 1995 quarter exclude those of Marshalls after its
        disposition on Nov. 17, 1995.  Adjusting for this disposition, total
        net sales, inclusive of discontinued operations, increased 8.5%.
        Same store sales for the quarter rose 3.0%.

        
            The consolidated net loss for the quarter was $610.4 million
        inclusive of a fourth quarter after-tax charge of $753 million
        related to the company's previously announced comprehensive
        restructuring plan.
   

     
            Prior to the fourth quarter after-tax charge, consolidated net
        earnings for the quarter were $147.7 million, or $1.36 per share,
        compared to $212.7 million, or $1.97 per share for the 1994 fourth
        quarter.  Excluding Marshalls, as well as these charges, fourth
        quarter net earnings were $1.44 per share in 1995, compared to $1.40
        per share in 1994.
      



       
            For the year ended Dec. 31, 1995, total net sales inclusive of
        discontinued operations, were $11.5 billion, an increase of about 2%
        from sales of $11.3 billion for the prior year.  Adjusting for the
        disposition of Marshalls, total net sales, inclusive of discontinued
        operations, for the year increased, 6.7%.  Same store sales for the
        year increased 1.4%.
   

     
            The consolidated net loss for 1995 was $657.1 million, after
        taking into account the fourth quarter after-tax charge as well as a
        $46 million after-tax charge related to a change in the company's
        accounting policy for internally developed software. Adjusting for
        these charges totalling $799 million, net earnings per share would
        have been $1.26 per share, compared to $2.75 per share, for 1994.
        Excluding Marshalls in both years, as well as the after-tax charges
        in 1995, consolidated net earnings were $1.74 per share in 1995,
        compared to $1.83 per share in 1994.

        
            "There were several areas of strength in our performance in
        1995, despite the decline in our overall results,"  said Stanley P.
        Goldstein, chairman and chief executive officer.  "CVS continued its
        outstanding growth, once again generating record sales and operating
        profits.  Before special charges, operating profits at CVS jumped
        20% to $274 million on sales of $4.9 billion.  Footaction had an
        excellent year, highlighted by a 13.1% gain in same store sales.  In
        addition, we made a number of important operating improvements in
        several of our businesses, particularly Meldisco and Kay-Bee, which
        are yielding positive results.  However, the progress we made in
        these areas was offset by weak performance in others, particularly
        in the apparel segment."  
   

     
            On Oct. 24, 1995, the company announced a comprehensive
        restructuring program to improve shareholder value.  Its principal
        components include the creation of three new, independent publicly
        traded retailing companies focused on the chain drug, footwear and
        toy industries; the sale of Marshalls; the planned sale of Wilsons
        and This End Up; the consolidation of certain functions of Meldisco,
        Footaction and Thom McAn as well as the reduction of Melville's
        corporate overhead; and the closing of 330 underperforming stores.
      

  
            "It has been less than four months since we announced our
        restructuring program, and we are well on our way to completing its
        objectives," said Goldstein.  "Since the time of the announcement,
        the company has:


        



            "We are extremely pleased with our progress, and confident that
        the combined actions we are taking will lead to significantly
        improved profitability, greater financial strength and increased
        value for our shareholders," Goldstein concluded.
   

     
            As of Dec. 31, 1995, operating results include 6,657 stores and
        leased departments, a decrease of 9.8% from the total of 7,378 as of
        Dec. 31, 1994.
      

  
            Melville operates specialty retail stores nationwide in four
        business segments: prescription drugs, health and beauty care;
        apparel; footwear; and toys and home furnishings.  Its retail
        divisions include CVS, Meldisco, Kay-Bee, Linens `N Things and
        Footaction among others.

        
                    Melville Corp. and Subsidiary Companies
               Consolidated Statements of Operations (unaudited)
               ($ and Shares in 000's, except per share amounts)
        
                                            Fourth Quarter Ended         
        
                                     Dec. 31,    % of    Dec. 31,    % of  
                                       1995      Sales     1994      Sales
        
        Net sales                       $2,920,967   100.0   $3,135,709
        100.0
        Cost of goods sold, buying
         and warehousing costs           1,941,831    66.5    2,020,664
        64.4
        Gross margin                       979,136    33.5    1,115,045
        35.6        
        Selling, general and
        administrative expenses            732,136    25.1      732,308
        23.4
        Depreciation and amortization       42,577     1.5       43,817
        1.4
        Restructuring and asset
         impairment charge                 936,829    32.1
        --    0.0
        Operating (loss) profit           (732,406)  (25.1)     338,920
        10.8
        Interest expense, net               16,649     0.6       13,141
        0.4
        (Loss) earnings from
         continuing operations
         before income taxes and
         cumulative effect of change in
         accounting principle             (749,055)  (25.6)     325,779
        10.4
        Income tax (benefit) provision    (161,885)   (5.5)     145,334
        4.6
        (Loss) earnings from continuing
         operations before
         cumulative effect of change in
         accounting principle             (587,170)  (20.1)     180,445
        5.8
        (Loss) earnings from discontinued
         operations, net                   (23,188)   (0.8)      32,210
        1.0
        (Loss) earnings before cumulative
         effect of change in accounting
         principle                        (610,358)  (20.9)     212,655
        6.8
        Cumulative effect of change in
         accounting principle, net              --     0.0
        --    0.0
        Net (loss) earnings              $(610,358)  (20.9)    $212,655
        6.8       
        Weighted average number of common
         shares outstanding                105,089              105,595
        (Loss) earnings from continuing
         operations before cumulative
         effect of change in accounting
         principle                        $  (5.63)            $   1.67
        Discontinued operations, net         (0.22)                0.30
        (Loss) earnings before cumulative
         effect of change in accounting
         principle                           (5.85)                1.97
        Cumulative effect of change in
         accounting principle                   --                   --
        Net (loss) earnings per share
         of common stock                  $  (5.85)             $  1.97
        Dividends per common share        $   0.38              $  0.38
        Number of stores open at end
         of period                     
                                               Year Ended         
        
                                     Dec. 31,    % of    Dec. 31,    % of  
                                       1995      Sales     1994      Sales
        
        Net sales                       $9,689,062   100.0   $9,445,678
        100.0
        Cost of goods sold, buying
         and warehousing costs           6,574,658    67.9    6,238,378
        66.0
        Gross margin                     3,114,404    32.1    3,207,300
        34.0        
        Selling, general and
        administrative expenses          2,722,621    28.1    2,576,680
        27.3
        Depreciation and amortization      197,745     2.0      180,356
        1.9
        Restructuring and asset
         impairment charge                 936,829     9.7
        --    0.0
        Operating (loss) profit           (742,791)   (7.7)     450,264
        4.8
        Interest expense, net               54,977     0.6       32,385
        0.3
        (Loss) earnings from
         continuing operations
         before income taxes and
         cumulative effect of change in
         accounting principle             (797,768)   (8.2)     417,879
        4.4
        Income tax (benefit) provision    (182,070)   (1.9)     174,293
        1.8
        (Loss) earnings from continuing
         operations before
         cumulative effect of change in
         accounting principle             (615,698)   (6.4)     243,586
        2.6
        (Loss) earnings from discontinued
         operations, net                       547     0.0       63,884
        0.7
        (Loss) earnings before cumulative
         effect of change in accounting
         principle                        (615,151)   (6.3)     307,470
        3.3
        Cumulative effect of change in
         accounting principle, net          41,955     0.4
        --    0.0
        Net (loss) earnings              $(657,106)   (6.8)    $307,470
        3.3       
        Weighted average number of common
         shares outstanding                105,081              105,481
        (Loss) earnings from continuing
         operations before cumulative
         effect of change in accounting
         principle                        $  (6.02)            $   2.15
        Discontinued operations, net          0.01                 0.60
        (Loss) earnings before cumulative
         effect of change in accounting
         principle                           (6.01)                2.75
        Cumulative effect of change in
         accounting principle                (0.40)                  --
        Net (loss) earnings per share
         of common stock                  $  (6.41)             $  2.75
        Dividends per common share        $   1.52              $  1.52
        Number of stores open at end
         of period                           6,657                7,378

        Note:  Percentages may not foot due to rounding.
        
        IN ACCORDANCE WITH APB OPINION NO. 30, THE FOOTWEAR SEGMENT HAS
        BEEN CLASSIFIED AS DISCONTINUED AS DISCONTINUED OPERATIONS FOR ALL
        PERIODS PRESENTED DUE TO ITS INTENDED SPINOFF DURING 1996.
        
                         Melville Corp. and Subsidiary Companies
                         Consolidated Balance Sheets (unaudited)
                                     ($ in 000's)
        
                                            Dec. 31,         Dec. 31,
                                              1995             1994
        ASSETS
        Current assets:
         Cash and cash equivalents              $129,583         $117,035
         Investments                             175,000               --
         Accounts receivable, net                296,393          229,833
         Inventories                           1,672,957        2,138,243
         Prepaid expenses                        285,995          165,388
        Total current assets                   2,559,928        2,650,499
        Property, and equipment, net           1,114,404        1,526,922
        Other non-current assets                 287,230          558,068
        TOTAL ASSETS                          $3,961,562       $4,735,489
        
        LIABILITIES AND EQUITY
        Current liabilities:
         Accounts payable and accrued
          expenses                            $1,730,476       $1,320,193
        Notes payable                             52,000          200,000
         Other current liabilities                15,212          122,549
        Total current liabilities              1,797,688        1,642,742
        Long-term debt(a)                        327,698          331,340
        Other non-current liabilities            287,083          378,472
        Redeemable preferred stock                 1,330            1,330
        Shareholders' equity                   1,547,763        2,381,605
        TOTAL LIABILITIES AND EQUITY          $3,961,562       $4,735,489

        (a) Includes $309,400 and $323,000 related to the company's Employee
        Stock Ownership Plan in 1995 and 1994, respectively.

        Certain reclassifications have been made to the financial statements
        of prior periods to conform to current period presentation.

         CONTACT:  Melville Corp., Rye
                   Nancy Christal, 914/925-4385 (for investors)
                      or
                   Kekst & Co.
                   Jim Fingeroth or Wendi Kopsick, 212/593-2655 (for media)



ANACOMP REACHES CONSENSUAL AGREEMENT-IN-PRINCIPLE ON FINANCIAL RESTRUCTURING

        
            ATLANTA, Feb. 15, 1996 - Anacomp,
Inc.
(NYSE: AAC) today
        announced that it has reached a consensual agreement-in-principle
        with all of its major creditor groups on the terms of a financial
        restructuring plan to enable Anacomp's emergence from Chapter 11.
        


            The agreement represents a compromise among Anacomp, its senior
        secured lenders, and an official committee of unsecured creditors.
        The company believes the support of these groups provides sufficient
        votes for the confirmation of its reorganization plan, which is
        being amended to reflect the terms of the agreement.
        


            The agreement reached today calls for Anacomp's current debt and
        accrued unpaid interest and dividends of approximately $460 million
        (including preferred stock) to be reduced by approximately $173
        million. In very general terms, the amended plan will provide for:
        


        
            Anacomp will file an 8-K with the Securities and Exchange
        Commission this week detailing the terms of the agreement-in-
        principle.
     

   
            Anacomp filed a pre-negotiated plan of reorganization under
        Chapter 11 of the United States Bankruptcy Code on January 5, 1996.
        The agreement-in-principle announced today retains the company's
        commitment to continue to pay its vendors on normal trade terms and
        to honor all obligations to customers.
        


            "This agreement-in-principle paves the way for Anacomp to emerge
        from Chapter 11 on an expedited basis and allows management to focus
        its energies on our customers," noted P. Lang Lowrey III, the
        company's new president and chief executive officer.  "In light of
        today's agreement, we believe we can get our financial restructuring
        plan approved by the bankruptcy court this Spring."
        


            Anacomp is a leading provider of multiple-media data management
        solutions, delivering cost-effective strategies that incorporate
        micrographic, digital, and magnetic output media.
        


        CONTACT:  Jeff Withem, Corporate Communications, 404-876-3361, ext.
        8527, or Nancy Vandeventer, Investor Relations, 800-350-3044, both
        of Anacomp



CONSEP, INC. REPORTS FOURTH QUARTER AND YEAR END RESULTS

        
            BEND, Ore., Feb. 15, 1996 - Consep, Inc. (Nasdaq: CSEP)
        today reported results for the fourth quarter and year ended
        December 31, 1995.
        


            Revenue for the fourth quarter of 1995 increased by 20% to
        $4,002,000 from $3,344,000 reported in the same period last year.
        Sales of proprietary products increased strongly by approximately
        145% in the fourth quarter, offsetting a slight 3% decline in
        revenues from distribution operations.  The Company's net loss for
        the fourth quarter was $1,163,000, or $0.15 per share, compared to a
        net loss of $2,912,000, or $0.47 per share, in 1994.  The fourth
        quarter has historically produced lower revenues and a net loss due
        to the seasonality of the insect control market.  The reduction in
        the net loss for this traditionally slow quarter was achieved as a
        result of increased sales of proprietary products at stronger gross
        margins while reducing operating expenses by 34% from their 1994
        fourth quarter level. 1994 fourth quarter and year-end results
        included a restructuring charge of $866,000.

        
            For the year ended December 31, 1995, revenues increased 23% to
        $30,844,000 from $25,120,000 reported for 1994.  Importantly,
        revenues from proprietary pest control products grew 64% in 1995 to
        $9,385,000 from $5,738,000 in 1994.  Revenues from distribution
        operations increased 11%.  The net loss for 1995 was $1,286,000, or
        $0.19 per share, as compared to a loss of $5,850,000, or $0.97 per
        share, in 1994.
   

     
            Gross margins from the sale of proprietary products increased to
        42% of proprietary product revenues in 1995 from 38% in 1994.  Gross
        margins from distribution operations increased to 18% in 1995 from
        16% in 1994.

        
            "Despite the quarter's seasonality, we are pleased with our
        results and the strong increase in proprietary revenues," commented
        Volker Oakey, President and CEO.  "Sales in the quarter were led by
        a 72% increase in revenues from proprietary consumer products and
        the addition of revenues from Farchan Laboratories, acquired in
        February 1995.  For the year, revenues from agricultural proprietary
        products grew by 70%, consumer products revenues increased 29% and
        Farchan Laboratories contributed $1,194,000 in revenues."
   

     
            "In 1995, we set out to grow our proprietary product revenues,
        strengthen our gross margins and achieve profitability during our
        seasonally strong first and second quarters.  We are pleased to
        report that we succeeded at accomplishing these goals.  Demand for
        our proprietary products is increasing and we feel that we are well
        positioned to build on the expanding opportunity in 1996.  In the
        coming year, we will look to continue to capitalize on the sales
        momentum of our pest control products, while controlling our costs
        and improving our bottom line."

        
            Consep, Inc. develops, manufactures and markets environmentally
        safe pest control products for commercial agriculture and the
        consumer home, lawn and garden markets.  The Company currently has
        five mating disruption products fully registered with the EPA for
        commercial sales. Consep also owns and operates full-line
        agrichemical distributors in key agricultural regions in order to
        facilitate the market introduction and market expansion of its
        proprietary products.
   

     
                                  CONSEP, INC.
                      Consolidated Statements of Operations
          For the Fourth Quarters and Years Ended December 31, 1995 and
                                December 31, 1994
        
                              4th Quarter 4th Quarter Year Ended Year Ended
                                 Ended       Ended
                                Dec. 31,    Dec. 31,   Dec. 31,   Dec. 31,
                                  1995        1994       1995       1994
                               (unaudited) (unaudited)
        
        Revenues:
         Proprietary products   $1,272,122 $ 520,133  $9,385,112 $5,737,783
         Distribution            2,729,692 2,824,191  21,458,622 19,381,844
          Total revenues         4,001,814 3,344,324  30,843,734 25,119,627
        Cost of Revenues:
         Proprietary products      819,343   459,800   5,478,827  3,542,715
         Distribution            2,156,564 2,423,261  17,615,237 16,273,273
          Total cost of revenues 2,975,907 2,883,061  23,094,064 19,815,988
        Gross margin:
         Proprietary products     452,779     60,333   3,906,285  2,195,068
         Distribution             573,128    400,930   3,843,385  3,108,571
          Total gross margin    1,025,907    461,263   7,749,670  5,303,639
        Operating expenses:
         Research and
          development (1)         262,160    326,580   1,059,048  1,725,635
         Selling, general and
          administrative (1)    1,130,269  1,219,457   4,631,787  4,912,434
         Distribution (2)         790,535    902,582   3,364,971  3,631,402
         Restructuring costs           --    865,987          --    865,987
          Total operating
           expenses             2,182,964  3,314,606   9,055,806 11,135,458
        Other income (expense),
         net                       -5,752    -58,372      19,657    -18,016
         Net loss             $-1,162,809 -2,911,715 -11,286,479 -5,849,835
        Net loss per common and common
         equivalent share     $     -0.15 $    -0.47 $     -0.19 $    -0.97
        Weighted average common
         and common equivalent
         shares outstanding     7,551,059  6,261,344   6,761,623  6,001,883
        
            (1) Research and development and selling, general and
        administrative expenses relate to the company's proprietary product
        operations and to general corporate matters.
        
            (2) Distribution expenses consist entirely of selling, general
        and administrative expenses of the company's distribution operations
        
                      Consolidated Condensed Balance Sheets
        
                                          Dec. 31, 1995   Dec. 31, 1994
        ASSETS
         Current assets:
          Cash, cash equivalents and
           short-term investments           $ 2,206,096    $ 3,405,149
          Accounts receivable                 3,797,425      3,473,763
          Inventories                         8,012,430      5,697,053
          Other current assets                  616,717        491,887
           Total current assets              14,632,668     13,067,852
         Property and equipment, net          3,215,841      3,065,635
         Other assets                         3,710,065      3,518,144
          Total assets                      $21,558,574    $19,652,631
        LIABILITIES & SHAREHOLDERS' EQUITY
         Current liabilities:
          Bank lines of credit              $ 1,710,997    $ 1,376,807
          Other current liabilities           3,937,950      4,829,203
           Total current liabilities          5,648,947      6,206,010
         Long-term liabilities                1,228,147      1,006,675
           Total liabilities                  6,877,094      7,212,685
         Shareholders' equity                14,68l,480     12,439,946
           Total liabilities and
            shareholders' equity            $21,558,574    $19,652,631


        CONTACT:  Howard Allred, CFO of Consep, Inc., 503-388-3688; or
        Douglas Sherk or Chris Danne, 415-296-7383, or Jill Ruja or Ellissa
        Grabowski, 212-850-5600, all of Morgen-Walke Associates, for Consep


PIC 'N PAY STORES, INC. FILES VOLUNTARY CHAPTER 11 PETITION
; Company's New Owners To Restructure Operations


            CHARLOTTE, N.C. -- Feb. 15, 1996 --
Pic 'N Pay
        Stores, Inc.
, today announced that, as part of its new owners'
plans
        to downsize and restructure the company, Pic 'N Pay has filed a
        voluntary petition for reorganization 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 Pic 'N Pay to conduct business as usual under the protection
        of the court while the new owners reorganize the company's
        operations.  
        


            Based in Charlotte, N.C., Pic N' Pay Stores, Inc. is the largest
        footwear and accessories retailer in the Southeastern United States.
        The company operates approximately 800 stores in 20 states under the
        Pic 'N Pay, Shoe World and Shoe City names and has annual revenues
        of approximately $240 million.  The company's stores are located in
        malls, shopping centers and freestanding locations.  

        
            Pic 'N Pay Stores was acquired earlier this month by Sussex
        Holdings, Inc. from the Bata Shoe Organization, a privately held
        company based in Canada.  Sussex Holdings is a New Jersey-based
        investor group led by William F. Taggart, a private investor and
        turnaround specialist.  Mr. Taggart has been named Chairman of Pic
        'N Pay.  Joseph Gajda will continue as President and CEO of the
        chain.  
   

     
            "Founded nearly 40 years ago, Pic 'N Pay has grown to become one
        of the largest footwear retailers in the nation,"  Mr. Taggart said.
        "In the last few years, however, the company has been hampered by
        lackluster consumer spending on apparel and fierce competition in
        the footwear industry.  Nonetheless, we strongly believe that Pic 'N
        Pay continues to have a great franchise and are committed to using
        the reorganization process to ensure that the company reaches its
        full potential in the future.  

        
            "We hope to achieve a successful reorganization as quickly as
        possible,"  Mr. Taggart said.  "Our goal is to downsize the
        operation, including closing a substantial number of underperforming
        stores, to return the company to profitability.  Once this process
        has been completed, we will then pursue new opportunities for
        growth. The company already has the right infrastructure in place to
        achieve this goal, including a strong management team led by Joe
        Gajda."  
   

     
            Mr. Gajda, the President and CEO, said: "Today's chapter 11
        filing should not have any impact on our customers.  All of our
        stores are open, well-stocked, and conducting business as usual.  We
        intend to provide all customer services as normal."  
      


        CONTACT: Michael Freitag;
                 Todd Fogarty;
                 Kekst and Company;
                 (212) 593-2655



TODAY'S MAN INC. TO OPEN SHOE
DEPARTMENTS IN 9 STORES
        


            MOORESTOWN, N.J., Feb. 15, 1996 - href="chap11.todays.html">Today's Man, Inc.
        (Nasdaq: TMANQ) and The Shoe Corporation of America (SCOA) division
        of J. Baker, Inc. (Nasdaq: JBAK) announced that they have agreed to
        open additional licensed shoe departments in nine Today's Man
        stores.  The departments will be located in the five Today's Man
        stores in Washington, D.C., as well as Paramus, Wayne, East Hanover
        and Woodbridge, New Jersey.  These new shoe departments are
        scheduled to open in mid-March.  SCOA currently operates the shoe
        departments in the Today's Man store in the Chelsea section of
        Manhattan.
        


            Today's Man Chairman and CEO, David Feld, stated,  "We believe
        the shoe departments will be an important part of the on-going
        Today's Man merchandising strategies, and we are looking forward to
        working with SCOA to continue to build our business relationship."
        


            Today's Man, Inc., operating under the protection of Chapter 11
        of the Bankruptcy Code as a debtor-in-possession, operates 28
        menswear superstores in the Philadelphia, New York and Washington
        markets.
        


        CONTACTS:  Frank E. Johnson, Vice President and Chief Financial
        Officer of Today's Man, 609-722-6380; or Edward Nebb or Jeff Majtyka
        of Morgen-Walke Associates, 212-850-5600