TCR_Public/960319.MBX BANKRUPTCY CREDITORS' SERVICE, INC.


Bankruptcy News For - March 19, 1996



  1. ANDOVER TOGS ANNOUNCES BANKRUPTCY FILING
  2. SEARCH CAPITAL SUBSIDIARIES CONVERT 100 PERCENT OF DEBT TO EQUITY
  3. GANTOS, INC. REPORTS PROFIT



ANDOVER TOGS ANNOUNCES BANKRUPTCY FILING

        
            NEW YORK, March 19, 1996 - ANDOVER
TOGS, INC.
(Nasdaq:
        ATOG) announced that its Board of Directors has authorized the
        filing of a Petition under Chapter 11 of the Federal Bankruptcy
        Code. The Petition is being filed today.
        


            On March 5, 1996, the Company announced a fiscal 1995 loss of
        $4,279,000.  The Company also disclosed that as a result of the
        loss, the Company ceased to be in compliance with many of the
        financial covenants in its various credit agreements, causing
        defaults under those agreements.

        
            During the last two weeks, intensive negotiations have been
        conducted on an almost continuous basis among the Company, its
        principal stockholders, existing bank lenders and prospective
        lenders and investors in an effort to obtain ongoing financing.  The
        negotiations have not been successful and the Company has been
        unable to obtain the financing necessary to enable it to continue
        its operations outside of the protection of the Bankruptcy Court.

        
            Accordingly, the Company is today filing a petition seeking
        protection under the reorganization provisions of Chapter 11 of the
        Federal Bankruptcy Code.  The Company is exploring opportunities for
        possible debtor in possession financing to enable the Company to
        continue operations for a period of time.  During that period the
        Company may seek purchasers for portions of its business on a going
        concern basis and otherwise seek to maximize values.  There is no
        assurance that these efforts will be successful.  In the event that
        the Company is unable to obtain debtor in possession financing so as
        to enable it to continue operations, the Company will have no choice
        other than to liquidate on as orderly a basis as possible.
   

     
        CONTACT:  William L. Cohen, Chief Executive Officer of Andover
        Togs, Inc., 212-244-0700



SEARCH CAPITAL SUBSIDIARIES CONVERT 100 PERCENT OF DEBT TO EQUITY
        


            DALLAS, March 19, 1996 - Search
Capital Group, Inc.
(OTC
        Bulletin Board: SRCG) announced today that Value Partners, Ltd.
        purchased approximately $12,798,500 principal amount of certain
        creditors' ("Noteholders") secured claims in eight Search
        subsidiaries operating under Chapter 11 bankruptcy.  Value Partners,
        Ltd. is a Texas limited partnership.  Its general partner and
        manager, Fisher Ewing Partners, is a Dallas based partnership
        between Richard W. Fisher and Timothy G. Ewing.  Fisher Ewing
        Partners has given notice that Value Partners, Ltd. will exchange
        these secured claims for Search Equity in the same manner as
        provided in the Joint Plan of Reorganization.
        


            The sale of these creditors' secured claims comes only 11 days
        after the U.S. Bankruptcy Court Dallas Division confirmed the Joint
        Plan of Reorganization.  Search Capital itself is not in bankruptcy,
        but is a co-proponent of the Joint Plan.

        
            As a result of this sale of claims and their ultimate conversion
        to Search stock, Search has achieved its goal of a 100 percent
        conversion of over $68 million of non-recourse subsidiaries' debt to
        equity. Search estimates that with this transaction, and upon
        consummation of the Joint Plan, it will have approximately $36
        million in equity and over $14 million in cash.

        
            Under the Joint Plan, creditors could elect one of the two
        recovery options, including the Search Equity Option or the
        Collateral Option.
   

     
            After creditors' election of recovery options ended on Feb. 27,
        1996, about 80 percent of the creditors elected the Search Equity
        Option which requires creditors to exchange their notes in the
        bankrupt subsidiaries for a combination of a new class of
        convertible preferred stock, plus a cash dividend accumulated from
        July 1, 1995, and common stock of Search.  The remaining 20 percent
        of creditors elected the Collateral Option under which the creditor
        would receive cash distributions upon the liquidation of the
        collateral which originally secured their Notes (e.g. cash, used-
        automobile loan contracts and repossessed vehicles).
      

  
            This sale of creditors' secured claims relates to those
        creditors who had elected the Collateral Option.  This sale enables
        those creditors who elected the Collateral Option to realize a
        higher return than they might have realized through the liquidation
        of their collateral.  In order to effect the sale of creditors'
        claims, the Official Creditors' Committee and Search obtained an
        order from the Court allowing for the Joint Plan to be amended to
        allow for the sale of the creditors' notes or claims, instead of
        liquidating the underlying collateral.  The amendment allows Value
        Partners to select the Search Equity Option.

        
           "This transaction provides for the immediate cash-out of those
        creditors who elected the collateral option, provides Search with
        additional equity and cash and consummates our goal of achieving a
        100 percent conversion of debt-to-equity.  The fact that Value
        Partners wanted Search stock represents a strong vote of confidence
        in Search's management and our ability to position Search as a
        premier player in the sub-prime auto financing industry," said
        George C. Evans, chairman and chief executive officer of Search.

        
           Tim Ewing, partner-in-charge of Value Partners, Ltd., commented:
        "With the cooperation of the company and the creditors' committee,
        we have been able to effect a strategic investment in Search Capital
        Group under a critical deadline imposed by the company's Joint Plan
        of Reorganization.  Value Partners' intent, via its consensual
        exchange of secured claims for equity, to buy stock in the company
        indicates our confidence in George Evans and the talented executives
        he has assembled to rebuild Search.  Their great depth of experience
        in managing large finance companies is a relevant attribute of our
        investment.  We expect that Mr. Evans and his team, fortified by
        this addition to long term capital, will generate returns
        satisfactory to our partners and the other shareholders of Search
        capital."
   

     
           Search Capital Group, Inc. is a specialized financial services
        company engaging in the purchase and management of used motor
        vehicles receivables.  Search shares are currently being traded on
        the OTC Bulletin Board (SRCG.OB).


        CONTACT:  Chris Anderson of Stern Nathan & Perryman, 214-373-1601;
        or George C. Evans, chairman, president & CEO of Search Capital
        Group, Inc., 214-965-9600



FISCAL 1995 NET INCOME OF $3.7 MILLION
VERSUS $2.6 MILLION IN FISCAL 1994

        
            GRAND RAPIDS, Mich., March 19, 1996 - Gantos, Inc.
        (Nasdaq: GTOS), today announced its second consecutive year of
        profitability, having successfully emerged from its Plan of
        Reorganization in March, 1995.
        


            For the fourth quarter ended February 3, 1996, net income was
        $3.1 million, or $0.46 per share, (14-week) compared to net income
        of $4.4 million, or $1.67 per share, for the 13-week period a year
        ago.
        


            Gantos' fiscal 1995 net income increased to $3.7 million, or
        $0.55 per share, (53-weeks) compared to $2.6 million, or $.97 per
        share, for the 52-week period a year ago.  The results were
        positively impacted by non-recurring gains of $0.9 million and $2.7
        million in fiscal 1995 and 1994, respectively.

        
            The earnings per share computations for all periods reflect the
        one- for-two reverse stock split incorporated in the March 1995 Plan
        of Reorganization and, beginning March 31, 1995, the subsequent
        issuance of approximately 4.6 million new shares as part of the Plan
        of Reorganization.
   

     
            Commenting on the Company's results, Gantos Chief Executive
        Officer L. Douglas Gantos said, "In light of the continuing
        difficult and highly promotional women's specialty apparel
        environment throughout 1995, our accomplishments in expense control,
        inventory management, and gross margin disciplines enabled the
        Company to move forward profitably.  We remain committed to
        increasing shareholder value through improved bottom-line
        performance."

        
            Mr. Gantos added, "Our turnaround strategy of targeting the
        career customer with highly edited fashion assortments at affordable
        price points and customer service excellence is intended to elevate
        Gantos' identity in a crowded retail marketplace."
   

     
            Gantos, Inc., is a specialty store retailer of quality women's
        apparel and accessories.  Headquartered in Grand Rapids, the Company
        currently operates 113 stores in 23 states.
      


  
                                  GANTOS, INC.
                         CONDENSED STATEMENTS OF INCOME
            (Amounts in thousands, except per share and store data)
                                   Unaudited
        
                               Fourth Quarter Ended       Fiscal Year Ended
                               Feb. 03,    Jan. 28,      Feb. 03,   Jan. 28,
                                1996        1995           1996       1995
        
        Net sales              $56,057     $58,153       $192,790   $197,288
        
        Cost of sales (including
        buying, distribution and
        occupancy costs)       (43,093)    (45,465)      (151,912) (160,434)
        Gross income            12,964      12,688         40,878    36,854
        
        Selling, general and
        administrative expense (11,003)    (11,306)      (40,018)   (40,114)
        Credit for facilities
        closings and other         944       1,085            944     1,085
        Finance charge and other
        revenue                  1,294       1,385          4,472     5,020
        Operating income         4,199       3,852          6,276     2,845
        Interest expense
        (contractual interest of
        $25,585, $3,707 for 1995
        and 1994)               (1,057)        (31)        (2,278)    (122)
        Income before
        reorganization items,
        income taxes and
        extraordinary item       3,142       3,821          3,998    2,723
        Reorganization items:
         Professional fees          --      (1,305)          (530)  (3,336)
         Interest earned on
         accumulating cash
         from Chapter 11
         proceedings                --         303            251    1,572
        Net Reorganization items    --      (1,002)          (279)  (1,764)
        Income before income taxes
        and extraordinary item   3,142       2,819          3,719      959
        (Provision) benefit for
         income taxes               --          --             --       --
        Net income before
        extraordinary item       3,142       2,819          3,719      959
        Extraordinary item          --       1,628             --    1,628
        Net income              $3,142      $4,447         $3,719   $2,587
        Per share amounts:
         Net income per share
         before extraordinary
         item                    $0.41       $1.06          $0.55    $0.36
        Extraordinary item --
        gain on extinguishment
        of debt                     --        0.61             --     0.61
         Net income per share    $0.41       $1.67          $0.55    $0.97
        Weighted average shares
         outstanding             7,577       2,665          6,759    2,665
        Stores open at end of
        period                     113         114            113      114
        
                                  GANTOS, INC.
                            CONDENSED BALANCE SHEETS
                             (Amounts in thousands)
                                   Unaudited
        
                                                    Feb. 03,      Jan. 28,
                                                      1996         1995
        ASSETS
        Current assets:
          Cash and cash equivalents                   $1,453      $26,545
          Accounts receivable (net)                   22,619       25,165
          Merchandise inventories                     23,955       22,544
          Prepaid expenses and other                   2,851        3,347
           Total current assets                       50,878       77,601
        
        Property and equipment (net)                  17,532       18,382
          Total assets                               $68,410      $95,983
        
        LIABILITIES AND SHAREHOLDERS' EQUITY
        Current liabilities:
          Accounts payable-trade                     $12,119      $ 8,474
          Accrued expenses and other                  12,716       12,737
          Current provision for
            facilities closings                        2,417        2,610
           Total current liabilities                  27,252       23,821
        
        Long term debt                                12,395        5,192
        
        Long-term provision for
          facilities closings                           ---         2,040
        
        Liabilities subject to compromise               ---        59,749
        
        Shareholders' equity                          28,763        5,181
          Total liabilities and
            shareholders' equity                     $68,410      $95,983


        CONTACT:  Frederick Marx, 810-855-6777, for Gantos