NORWALK, CT -- July 9, 1996 -- The Caldor
Corporation (NYSE: CLD) today announced that it has agreed with its
banks to an amendment to its Debtor-in-Possession credit facility
which will increase the banks' total commitment by $50 million to a
total of $492 million.
Under the amended agreement, the $50 million commitment increase
will occur upon appropriate Bankruptcy Court approval and following
a payment against the Company's term loan from the net proceeds of
the sales from the 12 recently closed stores of approximately $25
million. Among other things, the amendment eliminates the potential
$50 million commitment reduction sch eduled for October 1996.
Instead, there will be an automatic reduction of $50 million on May
Jack Reen, Executive Vice President and Chief Financial Officer
of Caldor, commented, "We are pleased with the support we received
from our bank group in completing this amendment. Caldor currently
has significant credit availability of approximately $245 million
even without the benefit of the amendment. The commitment increase
is planned to enable us to continue to maintain significant excess
availability throughout peak borrowing periods."
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 23,000 Associates. It currently operates
159 stores in ten East Coast states and has plans to open two
additional stores later this year. With a strong consumer franchise
in high density urban/suburban markets, Caldor offers a diverse
merchandise selection, including both softline and hardline
CONTACT: Kekst and Company
Wendi Kopsick/Jim Fingeroth: 212/593-2655
LOS ANGELES, July 9, 1996 -- Grill Concepts, Inc. (Nasdaq:
GRIL) announced today that the management of Hamburger Hamlet, Inc.
has filed its plan in Bankruptcy Court, Central District, providing
for the sale to Grill Concepts of certain assets, including up to 19
Hamburger Hamlet restaurants in certain key U.S. locations.
Hamburger Hamlet, which presently is operating under Chapter 11
bankruptcy protection, said the selection of Grill Concepts was
based on an evaluative process that involved several companies. The
proposed asset purchase involves a combination of cash, performance
notes and warrants valued in excess of $10 million. The
consummation of the transaction is subject to completion of a
definitive agreement and a number of contingencies, including
further due diligence, the arrangement of satisfactory financing,
approval by the board of directors of both companies, Bankruptcy
Court and other customary approvals.
Robert Spivak, president and chief executive officer of Grill
Concepts, said, "Adding Hamburger Hamlet restaurants to our
organization will provide many synergistic benefits, as both
organizations serve the high end of the casual dining market."
Spivak added, "The transaction would accelerate our strategic
growth and provide new opportunities for expansion, both within our
existing operating regions, as well as in new locations. Moreover,
the acquisition would give us greater critical mass on which to
build shareholder value over the long term."
As part of its reorganization plan, Hamburger Hamlet has closed
12 units which were deemed unprofitable. The 19 restaurants which
remain open had annualized revenues in excess of $30 million. Grill
Concepts had revenues of $20.3 million in 1995.
Grill Concepts currently operates six Daily Grill restaurants in
Southern California, The Grill restaurant in Beverly Hills, and has
begun construction of two additional Daily Grills, one in the Tom
Bradley International terminal at LAX, and the other on Jamboree
Blvd. in Irvine, California. In addition, the company expects to
commence construction shortly of a Daily Grill in Washington, D.C.,
which is slated to open in the fourth quarter of 1996. The company
also operates other restaurant properties in New Jersey and
CONTACT: Robert Spivak or Michael Weinstock of Grill Concepts,
310-820-5559; or Roger S. Pondel or Michele Feller of Pondel Parsons
& Wilkinson, 310-207-9300