VAN NUYS, Calif. -- April 17, 1996 -- href="chap11.cherokee.html">Cherokee Inc.
(NASDAQ: CHKE) Wednesday reported net sales of $387,000 and net
income of $336,000, or 3 cents per common and fully diluted share,
for the company's third fiscal quarter ended March 2, 1996.
For the period ended Feb. 25, 1995, Cherokee reported net sales
of $20,475,000 and a loss of $1,175,000. Per share data is not
presented for the period ended Feb. 25, 1995 due to the general lack
of comparability as a result of the revised capital structure of the
company.
For the nine months ended March 2, 1996, the company reported
net sales of $13,297,000 and net income of $3,389,000, or 52 cents
per common and fully diluted share. For the nine months ended Feb.
25, 1995, the company reported net sales of $45,148,000 and a loss
of $7,771,000. Nine month results for the 1996 fiscal year
primarily reflect a non-recurring gain on the sale of the Cherokee
uniform division during the first quarter and the liquidation of
inventories.
Growth in Licensing Operations
"Our activities in expanding Cherokee's licensing strategy are
providing positive results," said Robert M. Margolis, the company's
chairman and chief executive officer. "Looking forward, we believe
that current licenses as well as anticipated new licensing
agreements and international expansion will produce a growing stream
of revenues and earnings in the coming years," Margolis continued.
The company has terminated manufacturing and importing apparel
and footwear and has sold most of its inventories. Cherokee's
operating strategy now emphasizes retail direct as well as wholesale
and international licensing. The company grants retailers the
license to use the Cherokee trademark on certain categories of
merchandise, including those products that the company previously
manufactured. Under this operating strategy, the company has been
able to significantly reduce its overhead and ongoing operating
costs. As a result, Cherokee today is no longer comparable to the
former Cherokee.
For the nine months and three months ended March 2, 1996
licensing revenues represented 6 percent and 76 percent of revenues,
respectively, and the terminated businesses represented 94 percent
and 24 percent of revenues, respectively. Future revenues will be
generated primarily through the licensing of the company's brand.
Retail Direct Agreements
During the company's third fiscal quarter, Cherokee signed two
retail direct licensing agreements which provide for minimum
guarantees in royalty revenues on net sales of merchandise with
terms of extension until Jan. 31, 1999. On March 12, 1996 Cherokee
reported an accord with O'Fallon, Missouri-based Venture Stores Inc.
(NYSE: VEN), the owner and operator of approximately 115 family
value department stores located throughout the Midwest and
Southwest, and on March 15 the company announced its agreement with
Norwalk, Conn.-based Caldor Corp. (NYSE: CLD), the fourth largest
discount department store chain in the nation.
Selling, general, and administrative expenses for the nine
months and third quarter were $3,412,000 and $346,000 or 26 percent
and 89 percent of sales, respectively. In the nine months, selling,
general and administrative expenses have declined from historical
levels and will continue to decrease primarily as a result of the
termination of the manufacturing and importing of apparel and
footwear. These actions enabled the company to reduce its work
force, space requirements and other operating expenses.
Strong Financial Position
As of March 2, 1996, Cherokee has cash and cash equivalents of
approximately $5.5 million, no long-term debt and is operating with
minimal overhead. In addition, Cherokee has reached agreement in
principle to settle all remaining unsecured creditors' claims
arising from its 1994 Chapter 11 proceedings. These claims are
payable in shares of stock of the company and therefore payment of
these claims will not have a material adverse effect on the
financial condition of the company.
Domestic and International Expansion
"Cherokee's exciting marketing concept encompasses a broad range
of exclusive and non-exclusive merchandise," continued Margolis.
"Cherokee looks forward to additional wholesale and retail direct
licensing agreements as we expand operations across the U.S. and
internationally," concluded Margolis.
The Cherokee mega brand, which took over 20 years to build,
beats all store labels in its class in recognized industry surveys.
The November 1995 Fairchild Publication Survey ranked Cherokee sixth
of the top ten sportswear brands. On Aug. 15, 1995, the company
entered into a major alliance with Target Stores, a division of
Dayton Hudson Corp., guaranteeing minimum royalties of $11,540,000
thru 2001. In addition to Target, the company has signed licensing
agreements with Mervyn's, Modern Woman/Woman's World, J. Byron and
others.
Cherokee, based in Van Nuys, a marketer and licenser of the
Cherokee brand, has 27 continuing licensing agreements worldwide
covering an ever increasing range of products.
For more information on Cherokee inc. via facsimile at no cost,
simply call 800/PRO-INFO and dial client code 058.
Cherokee Inc.
Consolidated Statements of Operations
(Unaudited)
Successor Predecessor Successor Predecessor
Company Company Company Company
Three months ended Nine months ended
March 2, Feb. 25, March 2, Feb. 25,
1996 1995 1996 1995
Net sales $ 387,000 $20,475,000 $13,297,000
$45,148,000
Cost of goods sold - 17,108,000 10,445,000
37,886,000
Gross profit 387,000 3,367,000 2,852,000
7,262,000
Selling, general
and administrative
expenses 346,000 5,488,000 3,412,000
14,440,000
Operating
Income (loss) 41,000 (2,121,000) (560,000)
(7,178,000)
Other expenses (income):
Interest expense 8,000 585,000 354,000
4,881,000
Investment and
interest income (164,000) (50,000) (367,000)
(57,000)
Gain on sale of
Uniform division
& Other assets (15,000) - (3,840,000)
-
Other - (178,000) (96,000)
999,000
Total other (income)
expenses, net (171,000) 357,000 (3,949,000)
5,823,000
Income (loss) before
income taxes 212,000 (2,478,000) 3,389,000
(13,001,000)
Income taxes (benefit) - (3,653,000)
- (5,230,000)
Net income (loss) $ 212,000 $ 1,175,000 $ 3,389,000
$(7,771,000)
Net income per
common and common
equivalent shares $ 0.03 /a $ 0.52
/a
Weighted average
common and common
equivalent shares
outstanding 6,574,961 /a 6,476,487
/a
Net income per
common and common
equivalent shares
outstanding $ 0.03 /a $ 0.52
/a
Weighted average
common and common
equivalent shares
outstanding-fully
diluted 6,635,708 /a 6,524,608
/a
/a Per share result is not presented due to the general lack of
comparability as a result of the revised capital structure of the
company.
Cherokee Inc.
Balance Sheets
March 2, 1996 June 3, 1995
(Unaudited)
Assets
Current assets:
Cash and cash equivalents
(includes Restricted cash
of $311,000) $ 5,439,000 $ 285,000
Receivables, net 624,000 11,553,000
Inventories 251,000 11,530,000
Other current assets 326,000 506,000
Total current assets 6,640,000 23,874,000
Property and equipment, net 26,000 37,000
Assets held for sale 3,576,000 3,665,000
Notes receivable and other, net 1,989,000 684,000
Total assets $12,231,000 $28,260,000
Liabilities and Stockholders' Equity
Current liabilities:
Short-term revolving
credit and other $ - $14,213,000
Accounts payable and
accrued expenses 20,000 1,360,000
Accrued payroll
and related expenses 37,000 1,559,000
Other accrued liabilities 74,000 2,306,000
Income taxes payable 74,000 100,000
Total current liabilities 205,000 19,538,000
Deferred income taxes payable 1,500,000 1,500,000
Stockholders' Equity:
Common stock, $0.02 par value,
20,000,000 shares authorized,
6,096,000 shares issued and
outstanding at June 3, 1995
and 6,441,553 shares issued
and outstanding at March 2, 1996 129,000 122,000
Additional paid-in capital 11,657,000 11,703,000
Accumulated deficit (1,058,000) (4,411,000)
Note receivable from stockholder (202,000) (192,000)
Stockholders' equity 10,526,000 7,222,000
Total liabilities and
stockholders' equity $12,231,000 $28,260,00
CONTACT: At the Company:
Carol Gratzke
Chief Financial Officer
818/908-9868
or
At Financial Relations Board:
Tom Ekman Daniel Saks
Analyst Contact General Info
310/442-0599 310/442-0599
NORWALK, Conn. -- April 17, 1996 -- href="chap11.caldor.html">The Caldor
Corporation (NYSE: CLD) today announced it has named Warren D.
Feldberg as President, Chief Operating Officer and a member of the
Board of Directors. Mr. Feldberg, who most recently served as
Chairman and Chief Executive Officer of Marshall's, brings 20 years
of retailing and merchandising experience to Caldor, including 12
years in the discount and off-price store industries. He will be
responsible for all of the Company's merchandising, merchandise
replenishment, marketing and store operations activities.
Don R. Clarke, Chairman and Chief Executive Officer of Caldor,
said, "Warren Feldberg is a seasoned retailing executive whose
background and skills are well-suited for Caldor. He has extensive
knowledge of the discount store industry and a broad range of
merchandising experience, including positions with some of the
nation's largest and most successful retailers, such as Target
Stores and Bloomingdale's. With his proven merchandising abilities
and leadership, Warren will be an excellent addition to our
management team and will play an important role in Caldor's
reorganization."
Mr. Feldberg, 46, served, from 1991 to 1995, as Chairman and
Chief Executive Officer of Marshall's, formerly Melville
Corporation's off- price division with annual sales of $3.0 billion
and 500 stores. Prior to that, from 1988 through 1991, he served in
a variety of positions for Target Stores, Dayton Hudson's discount
department store division, including President, Executive Vice
President and Senior Vice President -- General Merchandise Manager.
Mr. Feldberg served as Executive Vice President, Marketing for
Lechmere, a discount specialty store division of Dayton Hudson, from
1984 to 1988. He held a variety of merchandising and store
operations positions with Bloomingdale's from 1976 to 1984. Mr.
Feldberg earned an M.B.A. from The Harvard Graduate School of
Business Administration in 1976 and a B.A. from University of
Wisconsin in 1972.
Following bankruptcy court approval, Mr. Feldberg will succeed
Marc I. Balmuth, 48, who, as previously announced, is leaving the
Company. Mr. Balmuth has served as Caldor's President since 1987
and as a member of the Board of Directors since 1989.
"Marc has been an outstanding merchant and leader at Caldor, and
we thank him for his many contributions. On a personal level, Marc
has been a great partner, and I wish him all the best," said Mr.
Clarke.
The Caldor Corporation is the fourth largest discount department
store chain in the U.S., with annual sales of approximately $2.8
billion and approximately 24,000 Associates. It currently operates
170 stores in ten East Coast states and has announced the closing of
12 stores. With a strong consumer franchise in high
density/suburban markets, Caldor offers a diverse merchandise
selection, including both softline and hardline products.
CONTACT: Media:
Wendi Kopsick/Jim Fingeroth -
Kekst and Company,
(212) 593-2655
RYE, N.Y. -- April 17, 1996 -- Melville Corporation
(NYSE:MES), one of the nation's largest specialty retailers, today
told attendees at an investor/analyst conference that it achieved
improved results in the first quarter ended March 30, 1996.
The Company said that, based on preliminary estimates, it
expects to report net earnings for the quarter in the range of $0.05
to $0.10 per share. Same store sales for the quarter rose 6.8
percent.
Last year, Melville reported a loss of $0.29 per share for the
quarter. The Company said of that amount, a $0.22 loss per share
was attributable to Marshalls, which Melville sold to The TJX
Companies last November.
"Melville's year-over-year improvement was primarily driven by
our CVS and Footaction divisions," said Stanley Goldstein, chairman
and chief executive officer. "In addition, the cost-reduction and
other benefits of the strategic restructuring we are carrying out to
improve Melville's performance and increase shareholder value are
beginning to have their intended effect."
CONTACT: Nancy Christal Media: James Fingeroth
Vice President Wendi Kopsick
Investor Relations Kekst and Company
(914) 925-4385 (212) 593-2655
ATLANTIC CITY, N.J. -- April 17, 1996 -- William
Fasey, the Chairman, President and Chief Executive Officer of
American Gaming & Entertainment
Ltd. (OTC:"AGEL"); (the "Company")
today issued the following statement:
"Bloomberg Business News incorrectly reported today that the
Company is considering bankruptcy to keep the creditors of The
Bennett Funding Group Inc. ("Bennett Funding") from going after the
Company's assets and that the Company must `become an adversary of
Bennett.' Both statements are incorrect.
Bennett Funding is neither a stockholder nor a creditor of the
Company. The Company's major stockholder and creditor is Bennett
Holdings Inc. ("Bennett Holdings") which, the Company believes,
based on oral representations and a review of various public
records, has not filed for bankruptcy and is not owned by the same
members of the Bennett family as Bennett Funding. As disclosed in
the Company's Form 10-KSB for the year ended December 31, 1995, the
Company and Bennett Holdings are negotiating the terms of a
comprehensive restructuring of the Company's obligation to Bennett
Holdings. Such negotiations are continuing and Bennett Holdings has
taken no actions adverse to the Company or its other stockholders or
creditors. At this time, the Company is not actively pursuing an
imminent bankruptcy filing. However, as disclosed in the Company's
Form 10-KSB, there are circumstances under which a bankruptcy filing
could occur."
CONTACT: American Gaming & Entertainment Ltd.
William J. Fasy, 609/272-7700
WESTBURY, N.Y., April 17, 1996 - Spaceplex Amusement
Centers International, Ltd. (OTC Bulletin Board: SPAC) announced
today that Spaceplex-One,
Inc., a wholly owned subsidiary, has filed
for protection from its creditors under Chapter 11 of the US
Bankruptcy code, on April 16, 1996. This action was taken to permit
for the reorganization of creditors and the continued operation of
Spaceplex-One, Inc.'s business at the St. James, New York center.
CONTACT: James G. Manas of Spaceplex Amusement Centers
International, Ltd., 516-773-2900
ATLANTIC CITY, N.J. -- April 17, 1996 -- American
Gaming & Entertainment Ltd. (OTC:"AGEL"); (the "Company") reported
today that, as previously disclosed in its Form 10-KSB filed with
the Securities and Exchange Commission, it had net losses for common
stockholders of approximately $30,658,000 or ($2.47) per share for
the year ended Dec. 31, 1995, as compared to net losses for common
stockholders of approximately $26,775,000 or ($5.33) per share for
the year ended Dec. 31, 1994.
The operating loss incurred during 1995 included the writedown
of certain impaired assets of approximately $3,671,000 and equity in
losses, writeoff and estimated liabilities of subsidiaries in
bankruptcy (AMGAM Associates and
American Gaming and Resorts of
Mississippi Inc.) of approximately $8,168,000.
The Company received a disclaimer of opinion from its
independent auditors on the Company's 1995 financial statements.
The audit report of such independent auditors stated, in part, "The
(Company's) financial statements have been prepared assuming that
the Company will continue as a going concern - (The) Company's
recurring losses, negative working capital, stockholders'
deficiency, defaults under its debt agreements, uncertainties
relating to the liquidation of its subsidiaries ... and
uncertainties relating to the bankruptcy of and charges relating to
affiliates of its major stockholder and creditor - raise substantial
doubt about the ability of the Company to continue as a going
concern .... The (Company's) financial statements do not include any
additional adjustments that might result from the outcome of these
uncertainties. Because of the possible material effects of the
uncertainties referred to (above), we are unable to express, and we
do not express, an opinion on the (Company's) financial statements
for 1995."
The Company also announced that Robert C. Sprague, the Chairman
of the Company's Board of Directors and Albert C. Cerimeli, the
director elected by the holders of the Company's Series A Preferred
Stock, both resigned in April 1996 from the Company's Board of
Directors due to personal reasons. The Company's Board of Directors
elected William Fasy as Chairman, President and Chief Executive
Officer of the Company and elected J. Douglas Wellington, the
Company's General Counsel and Secretary, and Paul L. Patrizio, a
partner with the law firm of Rick, Steiner & Tannenbaum P.C. in New
York City, as directors of the Company.
The company's common stock is traded on the OTC Bulletin Board
under AGEL.
CONTACT: American Gaming & Entertainment Ltd.
William J. Fasy, 609/272-7700
NEW YORK, April 17, 1996 - The He-Ro Group, Ltd. (NYSE:
HRG) today announced third quarter results for the period ended
February 29, 1996.
For the third quarter of fiscal 1996, net sales were $12.3
million compared to net sales of $10.7 million for the three months
ended February 28, 1995. The Company reported a net loss of $1.0
million, or $.14 per share, for the three months ended February 29,
1996, compared to a net loss of $3.1 million, or $.46 per share,
which included a $1.0 million restructuring charge for the three
months ended February 28, 1995. The decrease in net loss was
primarily due to a reduction in operating expenses, resulting from
the Company's planned cost cutting measures.
Net sales were $40.8 million for the nine months ended February
29, 1996, as compared to net sales of $42.4 million for the nine
months ended February 28, 1995. The Company reported a net loss of
$1.7 million, or $.25 per share, for the nine months ended February
29, 1996, compared to a net loss of $2.9 million or $.44 per share
for the nine months ended February 28, 1995.
William J. Carone, Co-Chairman of the Company, noted, "The He-Ro
Group continues in its excellence of producing and selling a
superior quality line of evening and special occasion wear under
well-recognized labels as reflected by its improved operating
results, although sales have been weakened by the continuing
softness of the retail apparel market."
The He-Ro Group, Ltd. produces and markets a line of ladies
evening and special occasion wear under its proprietary labels,
including NITELINE by Della Roufogali, and under the licensed
designer label, BLACK TIE by Oleg Cassini.
THE HE-RO GROUP, LTD. AND SUBSIDIARIES
Consolidated Statements Of Income
(In thousands, except per share data)
(Unaudited)
Three Months Ended Nine Months Ended
Feb. 29 Feb. 28 Feb. 29 Feb. 28
1996 1995 1996 1995
Net Sales $12,278 $10,664 $40,827 $42,409
Cost of Sales 7,635 6,591 24,955 25,927
Gross Profit 4,643 4,073 15,872 16,482
Operating Expenses
Selling, general
administrative
expenses 5,003 5,655 15,666 16,742
Restructuring Charges -- 1,000 -- 1,000
Total 5,003 6,655 15,666 17,742
Operating income (loss) (360) (2,582) 206 (1,260)
Interest expense 607 488 1,903 1,685
Loss before income taxes (967) (3,070) (1,697) (2,945)
Provision for income taxes -- -- -- --
Net loss $(967) $(3,070) $(1,697) $(2,945)
Net loss per common
share $(0.14) $(0.46) $(0.25) $(0.44)
Weighted average shares
outstanding 6,717 6,717 6,717 6,717
CONTACT: Catherine P. Saxton for He-Ro Group, Ltd., 212-370-7180
CAPE CORAL, Fla., April 17, 1996 - ViroGroup, Inc.
(Nasdaq: VIRO) reported a net loss of $375,041, or $.06 per share,
for the second quarter of fiscal year 1996 ended February 29, 1996,
as compared to a net loss of $274,530, or $.13 per share (after a
deduction of $140,000 for preferred stock dividends), for the same
quarter of fiscal 1995, according to Bud Ogden, President and Chief
Executive Officer. The weighted average shares outstanding used to
calculate the per share amounts were 6,361,708 and 3,180,854 for
fiscal 1996 and 1995, respectively. Revenues for the first quarter
of fiscal 1996 were $3.4 million, a decline from the $5.6 million
reported for the same quarter of fiscal 1995.
"Revenues were down mainly due to the impact of the Florida UST
program curtailment combined with a reduction in New Orleans revenue
generated in the prior year by a federal agency project and a
decrease in landfill design revenues," Ogden said. "The implemented
company restructuring and staff adjustment program resulted in a 23%
increase in gross margins and a 23% reduction in selling, general
and administrative expenses reflecting increased productivity and
efficiencies," Ogden explained.
Six-Month Results
For the six-month period ended February 29, 1996, ViroGroup had
a net loss of $564,161, or $.09 per share. This compares to a net
loss of $109,589, or a net loss of $.12 per share for 1994 (after
deduction of preferred stock dividends of $280,000). Fiscal 1995
net loss included a $153,000 credit for a one-time gain on the
favorable settlement of contract claims. The weighted average
shares outstanding used to calculate the per share amounts were
6,361,708 and 3,180,854 for fiscal 1996 and 1995, respectively.
Revenues for the six-month period of fiscal 1996 were $7.6 million,
a decline from $11.5 million reported for the same period of fiscal
1995.
ViroGroup provides a full range of environmental,
hydrogeological, hazardous-waste and solid-waste management services
nationwide to correct and improve air, water and soil quality.
Financial tables to follow.
CONSOLIDATED BALANCE SHEET
(in thousands, except per share amounts)
2/29/96 8/31/95
(unaudited)
Assets
Current Assets:
Cash and cash equivalents $ 45.1 $ 104.7
Accounts receivable, net 4,050.9 4,165.1
Unbilled accounts receivable 1,154.4 1,683.8
Other current assets 480.9 387.1
Total Current Assets 5,731.3 6,340.7
Property and equipment, net 2,055.6 2,050.1
Long-term receivables, net 731.1 948.6
Other assets 40.8 71.4
Total Assets $8,558.8 $ 9,410.8
Liabilities and Shareholders'
Equity
Current Liabilities:
Accounts payable $ 891.0 $ 1,450.9
Accrued liabilities 1,958.5 2,292.0
Current maturities 19.7 37.1
Notes payable 1,820.1 1,089.7
Total Current Liabilities 4,689.3 4,869.7
Long-term obligations --- 99.4
Deferred income taxes --- 8.0
Total Liabilities 4,689.3 4,977.1
Shareholders' Equity
Preferred stock $0.01 par
value, 50,000,000 shares
authorized, 0 shares
outstanding --- ---
Common stock, $0.01 par value,
50,000,000 shares authorized,
6,361,708 shares issued and
outstanding 63.6 63.6
Additional paid-in capital 18,277.9 18,277.9
Accumulated deficit (14,472.0) (13,907.8)
Total Shareholders' Equity 3,869.5 4,433.7
Total Liabilities and
Shareholders' Equity $8,558.8 $9,410.8
ATLANTA, April 17, 1996 - Hayes
Microcomputer Products,
Inc. announced today that it has emerged from Chapter 11, having
paid all creditors in full plus interest. To fully fund its court-
approved Plan of Reorganization, Hayes closed several equity
investment transactions yesterday totaling $35 million for a 49%
stake in the company, and finalized a $70 million line of credit
with the CIT Group/Credit Finance, on which the company will draw
$14 million initially.
"This is a great day for our company, our customers, our
suppliers, and our employees! We kept our word and did what we had
to do to pay our creditors in full," said Dennis C. Hayes, Chairman
of Hayes. "We have closed the book on Chapter 11 and have our
sights focused straight ahead. Our plan is to launch an initial
public offering within two years," said Hayes.
Last week, Hayes announced its consolidated first quarter 1996
financial results, reporting operating income of $6.0 million on
$77.2 million in sales for the quarter. Compared with the same
quarter in 1995, sales increased 16.4% while operating income
increased 251%. Including a one-time gain from the sale of surplus
land owned by the company, net income for the quarter was $6.9
million versus a loss of $1.3 million the previous year.
Hayes has rebuilt its core management team in recent months with
the addition of a new Chief Financial Officer, James A. Jones, a new
Chief Technical Officer, Dr. Alan Clark, and a new Vice President of
Sales, Raymond Malcoun. The company is continuing its efforts to
recruit a new Vice President of Marketing. Hayes will soon announce
the appointment of its new President/CEO who is expected to join the
company on May 1, 1996. Dennis C. Hayes, founder of Hayes, will
serve as Chairman of the Board.
Hayes originally filed for Chapter 11 protection on Nov. 15,
1994. Its Plan of Reorganization was filed on May 15, 1995 and its
Disclosure Statement was approved on July 10, 1995. In completing
its own Plan, Hayes fought off two unsolicited acquisition attempts
from competitors Diamond Multimedia and U.S. Robotics. The Hayes
Plan was confirmed by Judge Hugh Robinson on March 8, 1996 after
nearly three months of confirmation proceedings. In consummating
its Plan, Hayes can now enjoy the benefits of its reorganization
efforts free from the administrative expenses related to court
proceedings.
Best known as the inventor of the PC modem, Hayes is recognized
around the globe as a leader in technical innovations, computer
communications standards, functional and feature-rich products, and
superior support and service. Founded in 1977, Hayes develops,
manufactures, and markets value-based computer communications
solutions for software, business, network and consumer market
segments. The company maintains an extensive global network of
authorized distributors, dealers, mass merchants, VARs, system
integrators and original equipment manufacturers. Hayes customers
include Fortune 1000 corporations, mid-size companies and corporate
branch offices, small and home office businesses, online and
telecommunications network providers, and millions of individual PC
users around the globe.
CONTACT: Andrew W. Dod, Director of Corporate Communications,
Hayes Microcomputer Products, 770-840-6808; Fax: 770-441-1238;
e-mail: adod@hayes.com, or Web: " target=_new>http://www.hayes.com">
http://www.hayes.com
SHERMAN OAKS, Calif., April 17, 1996 - href="chap11.hf.html">House of Fabrics,
Inc. (NYSE: HF) said today that it reached an agreement with its
bank group, led by Bank of America as agent, for an extension of its
debtor- in-possession (DIP) financing facility through June 28,
1996, in the amount of $17.3 million. The company currently has $2
million outstanding against the facility. The extension was
approved by the court yesterday and is subject to the completion of
final documentation.
Gary L. Larkins, president and chief executive officer of House
of Fabrics, said, "The extension of the DIP facility provides
assurance to our vendors that - as the company completes the final
states of its Chapter 11 restructuring - we have the continued
ability to pay for orders we are currently placing for spring and
fall merchandise.
"The extended credit facility is more than adequate to provide
for all our planned purchases and demonstrates the continued support
of the bank group," Mr. Larkins said.
House of Fabrics filed to restructure under Chapter 11 on
November 2, 1994.
CONTACT: Marvin S. Maltzman of House of Fabrics, 818-385-2303