TCR_Public/960726.MBX BANKRUPTCY CREDITORS' SERVICE, INC.


Bankruptcy and Troubled Company News


July 26, 1996



  1. Radius Announces Third Quarter Results
  2. Interleaf reports first quarter results
  3. Authentic Fitness Discloses Updated Financial Estimates for 1996 and 1997
  4. Ben Franklin Retail Stores, Inc. files Chapter 11 petiton
  5. LaCrosse Footwear Reports 2nd Quarter Results





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Radius Announces Third Quarter Results


        


            SUNNYVALE, Calif.  --  July 26, 1996  --  Radius Inc.
        (NASDAQ:RDUSC) today announced financial results for the third
        quarter of its 1996 fiscal year ended June 30, 1996.  
        


            Net revenues for the quarter were $20.0 million.  Income from
        operations was $954,000 which included $913,000 of restructuring
        reserve reversals.  Net income after interest, taxes and other
        income related to previously announced product group divestitures
        was $4.7 million or $0.26 per share.  The consolidated results for
        the third quarter of the prior fiscal year were net revenues of
        $87.3 million and net loss of $3.1 million or $0.21 per share.  
        


            "Returning to operating profitability is a key milestone in
        Radius' restructuring which began last October," said Chuck Berger,
        Chairman and CEO.  "We have focused on product lines where Radius
        adds significant technology and therefore can earn higher margins.
        Operating expenses have been reduced by over 70% and we have reduced
        overall liabilities by $53.0 million since fiscal year ended 1995."
        


            During the quarter, Radius introduced new graphics and digital
        video products.  The ThunderPower 1920 graphics card sets new
        standards for graphic card performance and high end publishing
        features while offering 1920 X 1080 and HDTV resolution.
        VideoVision Studio PCI brings VideoVision technology to the PCI bus.
        "Studio started the desktop digital video market three years ago and
        continues to have the largest installed base of non-linear, digital
        editing seats," Berger said.  "We also upgraded Radius Edit
        releasing version 2.0 which includes significantly enhanced audio
        capabilities and more advanced video editing functionality."  
        


            All assumptions, anticipations, and expectations contained
        herein are forward-looking statements that involve uncertainty and
        risk.  Actual results could differ materially from those projected
        in such forward-looking statements.  Each forward-looking statement
        should be read in conjunction with the Company's entire quarterly
        Report on Form 10-Q, including, but not limited to, "Management's
        Discussion and Analysis of Financial Condition and Results of
        Operations-Certain Factors That May Affect Future Results" contained
        in such Quarterly Report, and with "Management's Discussion and
        Analysis of Financial Condition and Results of Operations" contained
        in the Company's Annual Report on Form 10-K for the fiscal year
        ended September 30, 1995.
        


            Radius Inc. delivers Super Resolution graphics cards and
        displays, high-quality digital video hardware and software products
        to leading-edge computer users in the publishing, graphics, video,
        and education markets.  The Company's products are available through
        a worldwide network of Radius authorized resellers, system
        integrators, and distributors.



                                 Radius Inc.
                         Consolidated Balance Sheets

                                (in thousands)
        
                                     June 30,      September 30,
                                       1996           1995 (1)
                                    (unaudited)
        
        Assets:
        Current Assets:
        Cash                            $  3,264        $  4,760
        Accounts receivable, net          22,234          61,644
        Inventories                       15,825          15,071
        Prepaid expenses and other
         current assets                      424           2,336
        Income tax receivable                514             519
        Total current assets              42,261          84,330
        Property and equipment, net        1,475           3,031
        Deposits and other assets            142             517
                                     -------        --------
                                    $ 43,878        $ 87,878
        
        Liabilities and shareholders'
         equity (net capital deficiency)
        Current liabilities:
        Accounts payable                $ 37,952       $ 73,098
        Accrued payroll and related
         expenses                          2,196          5,815
        Accrued warranty costs               687          3,170
        Other accrued liabilities          8,866         11,920
        Accrued income taxes               2,056          1,665
        Accrued restructuring and other
         charges                          15,474         17,013
        Short-term borrowings             22,920         29,489
        Obligations under capital
         leases-current portion            1,293          1,494
        Total current liabilities         91,444        143,664
        
        Obligations under capital
         leases-noncurrent portion           321          1,331
        
        Shareholders equity: (net            
         capital deficiency)
        Common stock                     126,243        113,791
        Common stock to be issued              -         12,022
        Accumulated deficit             (174,144)      (182,993)
        Accumulated translation
         adjustment                           14             63
        Total shareholders' equity
         (net capital deficiency)        (47,887)       (57,117)
                                    --------       --------
                                    $ 43,878       $ 87,878
        
        (1) The balance sheet at September 30, 1995 has been derived from
        the audited financial statements at that date but does not include
        all of the information and footnotes required by generally accepted
        accounting principles for complete financial statements.
        

                                Radius, Inc.
                   Consolidated Statements of Operations

             (in thousands, except per share data; unaudited)
        
                            Three months ended      Nine months ended
                                 June 30,               June 30,
                            1996       1995         1996      1995
        
        Net sales             $ 20,034   $ 87,325     $ 83,261  $251,007
        Cost of sales           13,470     65,211       67,175   184,882
        Gross profit             6,564     22,114       16,086    66,125
        
        Operating expenses:
        Research and
         development             1,092      4,990        6,241    13,780
        Selling, general and
         administrative          4,518     18,442       21,430    48,725
        Total operating
         expenses                5,610     23,432       27,671    62,505
        
        Income (loss) from
         operations                954     (1,318)     (11,585)    3,620
        
        Other income (expense),
         net                     3,975     (1,531)      21,090    (4,605)
        Settlement of
         litigation                  -          -            -   (12,422)
        Income (loss) before
         income taxes            4,929     (2,849)       9,505   (13,407)
        
        Provision for income
         taxes                     216        263          656       450
        
        Net income (loss)     $  4,713   $ (3,112)    $  8,849  $(13,857)
        
        Net income (loss) per
         share:
        Net income (loss) per
         share                $   0.26   $  (0.21)    $   0.49  $  (0.96)
        
        Common and common
         equivalent shares
         used in computing net
         income (loss) per
         share                  18,412     14,791       17,950    14,386


        CONTACT:  Radius, Inc., Sunnyvale
                  Kimberly See, 408/541-5445


Interleaf reports first quarter results


        


            WALTHAM, Mass.  --  July 26, 1996  --  Interleaf Inc.
        (NASDAQ:LEAF) today reported revenues of $19.1 million and a loss of
        $3.8 million or ($0.22) per share for the quarter ended June 30,
        1996.  These results, which were in line with previously announced
        preliminary results, compare with revenues of $23.1 million and a
        profit of $0.5 million, or $0.03 per share for the first quarter
        ended June 30, 1995.
        


            Interleaf also reconfirmed that the company will incur a one-
        time restructuring charge of approximately $4 million to $5 million
        in the second quarter ending Sept. 30, 1996.  The restructuring will
        allow the company to reduce expenses and heighten the company's
        focus on its integrated document management business.
        



                                   Interleaf Inc.
                        Consolidated Statements of Operations

        
                                              Three months ended June 30
                                                   1996        1995
        
        In thousands, except for per share amounts       (unaudited)
        
        Revenues:
        
        Products                                  $   7,046   $   9,437
        
        Maintenance                                   7,472       7,792
        
        Services                                      4,536       5,898
        
        Total Revenues                               19,054      23,127
        
        Costs of Revenues:
        
        Products                                      1,626       1,660
        
        Maintenance                                   1,308       1,369
        
        Services                                      4,200       4,809
        
        Total costs of revenues                       7,134       7,838
        
        Gross Margin                                 11,920      15,289
        
        Operating Expenses:
        
        Selling, general and administrative          11,422      10,982
        
        Research and development                      4,270       3,926
        
        Total operating expenses                     15,692      14,908
        
        Income (loss) from operations                (3,772)        381
        
        Other income (expense)                          (28)         91
        
        Income (loss) before income taxes            (3,800)        472
        
        Provision for income taxes                       --          --
        
        Net income (loss)                         $  (3,800)     $  472
        
        Net income (loss) per share               $   (0.22)     $ 0.03
        
        Shares used in computing net income
           (loss) per share                          16,998      17,648
        

                                    Interleaf Inc.
                             Consolidated Balance Sheets

        
                                           June 30, 1996  March 31, 1996
        In thousands, except for share and
        per share amounts                       (unaudited)
        
                                       Assets
        
        Current Assets
        Cash and cash equivalents                 $   11,353    $   12,725
        Accounts receivable, net                      15,339        19,771
        Prepaid expenses and other current assets      2,222         2,112
        Total current assets                          28,914        34,608
        Property and equipment, net                    8,000         7,800
        Intangible assets                              8,617         6,164
        Other assets                                     689           344
        Total assets                              $   46,220    $   48,916
        
                         Liabilities and Shareholders' Equity
        
        Current Liabilities                       
        Accounts payable                          $    2,886    $    2,908
        Accrued expenses                              13,002        13,252
        Unearned revenue                              13,612        15,986
        Other current liabilities                        989         1,348
        Total current liabilities                     30,489        33,494
        Other liabilities                                260             3
        Total liabilities                             30,749        33,497
        Contingencies
        Shareholders' Equity
        Preferred stock, par value $.10 per share,
        authorized 5,000,000 shares:
           Series A Junior Participating, none issued
           and outstanding
           Senior Series B Convertible, issued and
           outstanding, 861,911 at June 30, 1996 and
           923,304 at March 31, 1996                      86            92
        Common stock, par value $.01 per share, authorized
           30,000,000 shares, issued and outstanding
           17,453,978 at June 30, 1996 and 16,697,988
           at March 31, 1996                             175           167
        Additional paid-in capital                    76,210        72,348
        Retained earnings (deficit)                  (60,758)      (56,958)
        Cumulative translation adjustment               (242)         (230)
        Total shareholders' equity                    15,471        15,419
        Total liabilities & shareholders' equity   $  46,220    $   48,916
        

        CONTACT: Interleaf Inc.:  G. Gordon M. Large, 617/768-1012  or  Dana Finnegan, 617/768-1038

        

AUTHENTIC FITNESS DISCLOSES UPDATED ESTIMATES FOR FISCAL FOURTH QUARTER AND YEAR END 1996 AS WELL AS FISCAL 1997


        


            LOS ANGELES, July 26, 1996  --  Authentic Fitness
        Corporation (NYSE: ASM) announced that a decline in sales and gross
        profit in the fourth fiscal quarter ended June 30, 1996 will result
        in a loss for the quarter, with estimated  earnings per share for
        the year now being approximately $.10 per share before non-recurring
        items, well below Street estimates of approximately $.88 per share.
        The shortfall is attributable to the previously announced bankruptcy
        and subsequent liquidation of Herman's, one of the company's major
        customers, and the longer than previously expected impact to both
        net sales and gross margin which is resulting from Herman's
        liquidating its unsold Speedo inventory into the marketplace at deep
        retail discounts of 60% and more. This discounting is taking place
        throughout the U.S.
        


            The company projected continued soft sales and gross margins for
        the first and second fiscal quarters of 1997 and currently estimates
        that fiscal year 1997 will not meet Street expectations of $1.25 per
        share but will be more likely in the range of $.90 per share for the
        year, with the shortfall coming primarily in the first half of the
        year.
        


            Authentic Fitness Corporation, headquartered in Los Angeles,
        California, designs and markets swimwear, swim accessories and
        fitness apparel under the Speedo(R), Speedo(R) Authentic Fitness(R),
        Oscar de la Renta(R), Catalina(R), Cole of California(R), and Anne
        Cole(R) brand names, skiwear, activewear, swimwear and accessories
        under the White Stag(R) brand name and skiwear under the
        Edelweiss(R), Mountain Goat(R) and Skiing Passport(R) brand names.
        


            Statements contained in this release that are not statements of
        historical fact are "forward-looking statements" within the meaning
        of the federal securities law.  Many factors that are inherently
        difficult to predict and beyond the control of the Company,
        including future economic conditions, changing competition, and the
        level and pricing of future orders from the Company's customers (in
        light of the presence of off-price liquidation merchandise or other
        conditions), could cause actual results to differ up or down from
        the estimates or projections discussed.  Accordingly, no assurance
        can be given that actual results will match such estimates or
        projections.
        


CONTACT:  Linda J. Wachner, 212-370-8204, or William S.
        Finkelstein, 212-370-8287, both for Authentic Fitness; or Jeffrey
        Taufield of Kekst and Company, 212-593-2655



BEN FRANKLIN RETAIL STORES, INC. NEWS RELEASE


        


            CAROL STREAM, Ill., July 26, 1996  --  Ben Franklin Retail
        Stores, Inc.
(Nasdaq: BFRS), announced that today it has filed for
        protection from its creditors under Chapter 11 of the U.S.
        Bankruptcy Code.  The filing was made in the U.S. Bankruptcy Court
        in the Northern District of Illinois.
        


            Robert A. Kendig, President and Chief Operating Officer, stated
        that Ben Franklin intends to use this protection to restore historic
        levels of service to its customers and feels that this will be
        possible with the support of its lenders and franchisees.
        


            Ben Franklin Insurance Agency (BFIA) and Auto Artistry,
        subsidiaries of Ben Franklin Retail Stores, Inc. will continue to
        operate outside of the Chapter 11 Bankruptcy Code conducting
        business in the ordinary course.
        


            Ben Franklin will work toward emerging from bankruptcy as
        quickly as practicable and is working with Price Waterhouse's
        Corporate Recovery Group to that end.  Ben Franklin intends to
        emerge from bankruptcy as a more competitive company by focusing on
        its core merchandise wholesaling business.
        


            Headquartered in Carol Stream, Illinois, Ben Franklin is a
        national broadline wholesaler of variety and craft merchandise and
        franchisor and operator of variety and crafts stores.
        


CONTACT:  David A. Brainard, Senior Vice President - Chief
        Financial Officer, of Ben Franklin Retail Stores, Inc., 708-462-
        6345



LACROSSE FOOTWEAR REPORTS SECOND QUARTER RESULTS


        


            LA CROSSE, Wis., July 26, 1996  --  LaCrosse Footwear, Inc.
        (Nasdaq: BOOT) today reported that net income for the second quarter
        of 1996 was $276,000 or $.04 per share compared to $106,000 or $.01
        per share for the same period last year.  Through the first six
        months of 1996, net income increased to $573,000 or $.08 per share,
        from $54,000 for the same period last year.  Net sales for the
        current quarter were $23.1 million compared to $20.5 million for the
        second quarter of 1995 and for the first six months of 1996 are
        $45.2 million compared to $40.2 million for the same period in 1995.
        


            During May 1996, the Company acquired the Red Ball(R) brand and
        associated assets for a cash purchase price of approximately $5.0
        million.  Since Red Ball, Inc. and its parent Norcross Footwear,
        Inc. had been operating under the protection of Chapter 11 of the
        Federal Bankruptcy Code since February 1996, annualized revenues for
        the balance of 1996 are expected to be well below Red Ball's 1995
        level.
        


            Also during May 1996, the Company formed an equal partner joint
        venture which purchased substantially all of the assets of Rainfair,
        Inc. for a cash purchase price of approximately $10.5 million.
        


            According to Patrick K. Gantert, LaCrosse Footwear, Inc.
        President and CEO, "the Red Ball purchase and the Rainfair joint
        venture are two key strategic steps for the Company.  The Red Ball
        brand will facilitate the expansion of our protective footwear
        distribution through mass merchant channels, while the Rainfair,
        Inc. line of rainwear and protective clothing complements our
        footwear products in all markets.  A new line of LaCrosse brand farm
        and work rainwear was introduced last month and preliminary sales
        results have been very positive."
        


            Net sales of LaCrosse(R) products for the quarter increased $.7
        million to $16.2 million compared to $15.5 million in 1995,
        resulting from initial shipments of the new LaCrosse leather work
        boot line, introduced in February 1996, and increased shipments
        under a current government contract.  LaCrosse product orders for
        the first half of 1996 were up about 3% over the 1995 first half
        including the effects of an inventory reduction program at a large
        private label customer and the current restructuring at Gander
        Mountain.  Excluding the impact of these large national accounts,
        LaCrosse product orders are up 8% for 1996.
        


            Danner(R) net sales for the quarter were down $.2 million from
        last year, however, orders for the new Danner Dri-Foot series are
        ahead of plan and will positively impact fall shipments.
        


            The new Rainfair, Inc. joint venture began operations as of May
        1, 1996 and contributed $2.1 million of sales for the quarter.  Red
        Ball sales will commence during the third quarter of 1996.
        


            Gross profit for the second quarter of 1996 increased to 26.2%
        of net sales compared to 24.7% in the second quarter of 1995.  More
        favorable pricing on key raw materials and productivity increases
        and cost reduction at the LaCrosse factory were the primary reasons
        for the increase.  Rainfair gross margins for the quarter were 20%,
        the result of lower factory utilization during the normally slow
        summer season.
        


            Operating expenses in the second quarter of 1996 were
        $5,381,000, or 23.3% of net sales, compared to $4,666,000, or 22.8%
        of net sales, for the second quarter of 1995.  Planned increases for
        marketing/advertising support for LaCrosse products and the addition
        of the Rainfair, Inc. business were the main reasons for the
        increase in spending.
        


            Interest expense increased $50,000 during the second quarter of
        1996 compared to the second quarter of 1995 reflecting the increased
        long-term debt of $12.5 million added during the quarter to finance
        the Rainfair and Red Ball purchases.
        


            Accounts receivable and inventories are up $4.2 million and $5.9
        million, respectively, in the second quarter of 1996 compared to the
        second quarter of 1995 as a result of the Rainfair and Red Ball
        purchases.  Comparable LaCrosse/Danner inventories at June 30, 1996
        were more than $3.5 million below the July 1, 1995 level.
        


            LaCrosse Footwear designs, manufactures and markets premium
        quality rubber, leather and vinyl footwear and rainwear and
        protective clothing for the sporting and outdoor, farm and general
        utility, occupational and children's markets under the LaCrosse(R),
        Danner(R), Red Ball(R) and Rainfair(R) brands and for private label
        customers.
        



                            LACROSSE FOOTWEAR, INC.
                            SELECTED FINANCIAL DATA

                                  (UNAUDITED)
                 (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
        
                                SECOND QUARTER ENDED      SIX MONTHS ENDED
                                 6/29/96      7/1/95     6/29/96     7/1/95
        (Income Statement)
        
        Net Sales                $23,054     $20,486     $45,185    $40,162
        
        Gross Profit               6,032       5,055      11,839     10,147
        
        Operating Expenses         5,381       4,666      10,634      9,724
        
        Income from Operations       651         389       1,205        423
        
        Interest Expense            (408)       (358)       (587)      (595)
        Other income (Expense)        92         142         204        260
        
        Income before Income Taxes   335         173         822         88
        
        Income Taxes                (132)        (67)       (322)       (34)
        Minority Interest             73          --          73         --
        
        Net Income (Loss)            276         106         573         54
        
        Net income (Loss) Applicable
         to Common Shareholders     $267         $77        $534        ($5)
        
        Net Income Per Average Common
         Share and Common Share
         Equivalents               $0.04       $0.01       $0.08      $0.00
        
        Weighted Average Common and
         Common Equivalent Shares
         Outstanding               6,681       6,668       6,680      6,691
        
        (Balance Sheet Data)
        
        Accounts Receivable -
         Net                     $21,433     $17,220
        
        Inventories - Net        $42,043     $36,175
        
        Short-term Borrowings    $14,039     $13,664
        
        Long Term Debt           $17,032      $6,690
        

CONTACT:  Robert J. Sullivan, Vice President - Finance of LaCrosse
        Footwear, 608-782-3020