TCR_Public/960820.MBX BANKRUPTCY CREDITORS' SERVICE, INC.


Bankruptcy and Troubled Company News


August 20, 1996



  1. Main Street and Main Inc. announces 2nd quarter and 6 month results





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MAIN STREET AND MAIN INCORPORATED ANNOUNCES SECOND QUARTER AND SIX-MONTH RESULTS; Company Takes $7.4 Million Restructuring Charge


        


            PHOENIX, AZ  --  Aug. 20, 1996  --  MAIN STREET AND MAIN
        INCORPORATED (Nasdaq NM Symbol: MAIN), the world's largest
        franchisee of T.G.I. Friday's restaurants, today announced financial
        results for the second quarter and six months ended July 1, 1996,
        which include a restructuring charge.  
        


            Revenue for the three months ended July 1, 1996 was $30,668,000
        compared to $31,128,000 in the comparable period in 1995.  The
        company incurred a net loss for the quarter of $7,288,000, or $0.92
        per share, after taking into account a $7,448,000, or $0.94 per
        share, restructuring charge (based on 7,952,000 shares) compared to
        net income of $311,000, or $0.09 per share (based on 3,648,000
        shares) in the comparable period a year ago.  Excluding the
        restructuring charge, net income for the quarter was $160,000, or
        $0.02 per share.  The company noted that second quarter results for
        this year were adversely impacted by its Front Row Sports Grill
        restaurant.  Had this site not been included in second quarter
        results and the restructuring charge not been taken, net income
        would have been $316,000, or $0.04 per share, for the period ended
        July 1, 1996.  The company is currently considering various
        alternatives with respect to the Front Row Sports Grill.  
        


            The increase in the number of shares outstanding for the quarter
        and six months ended July 1, 1996 reflects the company's October
        1995 common stock offering of 4,312,500 shares.  
        


            Approximately $6.3 million of the restructuring charge relates
        to non-core assets and contractual obligations.  The company wrote
        down $4.1 of a $6.0 million promissory note, net of an $864,000
        deferred gain, as a result of uncertainties respecting the debtor's
        business, and $1,296,000 of real estate held for future restaurant
        development and other non-core assets with the remaining amount
        relating to costs to be incurred through 1998 under the terms of an
        employment agreement and fees associated with restructuring and
        related matters.
        


            Additionally, $1.1 million of the restructuring charge relates
        to three of the company's restaurants.  These charges include
        preopening costs associated with a T.G.I. Friday's restaurant and
        the company's Front Row Sports Grill restaurant, where operating
        results have not been sufficient to support the preopening costs.  
        


            Operating results also were adversely affected by same-store
        sales declines aggregating 2% and 1.7% for the three- and six-month
        periods, respectively.  This decline, which is attributable
        primarily to six specific locations, offset the positive effects of
        the opening of three new restaurants and reductions in interest
        expenses of $330,000 and $667,000 during the three- and six-months,
        respectively, as a result of the retirement of approximately $8.7
        million of indebtedness with the proceeds of the company's October
        1995 public offering.  Since the end of the second quarter, same-
        store sales have declined approximately 5% over the comparable prior
        year results.  
        


            Joe Panter, President of Main Street, stated, "Sales continue to
        remain soft, but we continue to focus on ways to increase earnings,
        including improving our comparable-store sales, cost efficiencies,
        and leveraging our existing infrastructure.  Sales are a major focus
        within our organization, and we feel that our data base of
        approximately 600,000 people who signed up for our Frequent Friday's
        program will benefit our future marketing capabilities."  
        


            John Antioco, Chairman of the Board of Main Street, stated, "We
        are disappointed about current results, but remain confident
        regarding the Company's future.  As the largest franchisee of T.G.I.
        Friday's and a significant player in the casual dining segment, I
        believe Main Street's core business provides a terrific platform for
        future growth."  
        


            MAIN STREET AND MAIN INCORPORATED is the world's largest T.G.I.
        Friday's franchisee, operating 42 T.G.I. Friday's restaurants and
        one Front Row(R) Sports Grill restaurant in the western United
        States.


                                     
                     MAIN STREET AND MAIN INCORPORATED
                   CONSOLIDATED STATEMENTS OF OPERATIONS
                                (Unaudited)
                 (In Thousands, Except Per Share Amounts)
         
                                    Three Months Ended    Six Months Ended
                                     7/1/96   6/26/95     7/1/96  6/26/95
         
        Revenue                         $30,668   $31,128    $63,919
        $60,922
         
        Restaurant Operating Expenses:
          Cost of sales                   8,747     8,947     18,206
        17,306
          Payroll and benefits            9,546     9,367     19,780
        18,437
          Depreciation and amortization   1,055     1,079      2,230
        2,103
          Other operating expenses        8,968     8,862     18,493
        17,377
         Total restaurant operating
          expenses                   28,316    28,255     58,709   55,223  
        Income from restaurant
         operations                       2,352     2,873      5,210
        5,699
         
           Depreciation and amortization    350       326        736
        655
           General and administrative
        expenses                      1,047      1,111     2,005    2,221    
        Restructuring charge              7,448       ---      7,448     ---
         
        Operating income (loss)          (6,493)     1,436    (4,979)
        2,823
         
           Interest expense, net            795      1,125     1,610
        2,277
         
         Net income (loss) before
          taxes                      (7,288)       311    (6,589)     546
         
         Income tax expense             ---       ---        ---      ---
         
         Net income (loss)          ($7,288)      $311   ($6,589)    $546
         
        Net Income (Loss) Per Share      ($0.92)     $0.09    ($0.83)
        $0.15
         
        Weighted average shares
         outstanding                      7,952      3,648     7,952
        3,652



        CONTACT:   Main Street and Main Incorporated
                   Mark Walker
                   Chief Financial Officer
                   (602) 852-9000   
                          or
                   Lippert/Heilshorn & Assoc., Inc.
                   Richard Foote/Jeffrey Volk   
                   (212) 838-3777
                   E-Mail: RICK@SMTP.LHAI.COM