TCR_Public/960417.MBX BANKRUPTCY CREDITORS' SERVICE, INC.


Bankruptcy News For - April 17, 1996



  1. Cherokee reports third fiscal quarter results
  2. Caldor names Warren D. Feldberg president and COO
  3. Melville makes announcement
  4. American Gaming & Entertainment issues of Bloomberg Report
  5. SPACEPLEX-ONE, INC. FILES FOR PROTECTION IN FEDERAL BANKRUPTCY COURT
  6. American Gaming & Entertainment reports loss...
  7. HE-RO GROUP REPORTS THIRD QUARTER RESULTS
  8. VIROGROUP REPORTS SECOND-QUARTER RESULTS
  9. HAYES MICROCOMPUTER PRODUCTS INC. EXITS CHAPTER 11
  10. HOUSE OF FABRICS REACHES AGREEMENT TO EXTEND DIP FACILITY



Cherokee reports third fiscal quarter
results
        


            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



Caldor names Warren D. Feldberg
president and COO


            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
         



Melville makes announcement
        


            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


        
American Gaming &
Entertainment issues correction of Bloomberg Business News Report
        


            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



SPACEPLEX-ONE, INC.
FILES FOR PROTECTION IN FEDERAL BANKRUPTCY COURT
        


            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


        
American Gaming & Entertainment reports loss for 1995
and disclaimer of opinion from auditors; changes in Board of Directors
        


            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



HE-RO GROUP REPORTS THIRD QUARTER RESULTS

        
            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

        
            The accompanying condensed notes are an integral part of these
        consolidated statements.
      


        CONTACT:  Catherine P. Saxton for He-Ro Group, Ltd., 212-370-7180



VIROGROUP REPORTS SECOND-QUARTER RESULTS
        


            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
        

        CONTACT:  Bud Ogden, Chairman, President and CEO, ViroGroup, Inc.,
        941-574-1919


HAYES MICROCOMPUTER PRODUCTS INC. EXITS
CHAPTER 11; PAYS CREDITORS IN FULL
        


            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




HOUSE OF FABRICS REACHES AGREEMENT TO EXTEND DIP FACILITY

        
            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