TCR_Public/960917.MBX




InterNet Bankruptcy Library - News for September 17, 1996






Bankruptcy News For September 17, 1996



  1. SLM International files consensual plan of reorganization and appoints new chief executive officer

  2. Rickel Names Joseph Nusim Chief Executive Officer and President

  3. Bradlees, Inc. Reports 1996 Second Quarter Results




SLM International files consensual plan of reorganization and appoints new chief executive officer


NEW YORK, NY--Sept. 17, 1996--SLM International, Inc. (Electronic Bulletin Board: "SLMI") announced today that it has  
filed with the United States Bankruptcy Court in Wilmington, Delaware, a plan of reorganization that has the full support of  
each of the Company's key creditor groups. The Plan provides for a significant de-leveraging of SLM's capital structure and  
the conversion of the majority of the SLM's existing debt into one hundred percent of the equity of the reorganized entity that  
will be issued upon confirmation of the Plan. SLM expects to file a disclosure statement with respect to the Plan within the  
next five days and anticipates that the Plan will be approved by the Bankruptcy Court by late November of this year.


SLM also announced that its Board of Directors has approved the appointment of Gerald B. Wasserman as the new  
President and Chief Executive Officer of SLM and its subsidiaries. Mr. Wasserman is an experienced sporting goods  
industry executive who has previously served as President of Weider Health and Fitness, one of the world's largest  
manufacturers of exercise equipment and Canstar Sports, Inc., a leading manufacturer and supplier of hockey skates and  
equipment. "As a result of the financial restructuring to be implemented by the Plan, SLM and its subsidiaries, including  
CCM/Sport Maska, are uniquely poised to continue as the leading designer, manufacturer and distributor of high quality  
hockey, hockey related and in-line skate products" said Mr. Wasserman. SLM's current Chief Executive Officer, Howard  
Zunenshine, has stepped down from his position to pursue other interests but will continue to serve as a consultant to the  
Company and as a director until a new slate of directors for SLM and its subsidiaries is appointed in connection with  
confirmation of the Plan.


SLM International, Inc., through its operating subsidiaries, designs, develops, manufactures and markets a broad range of  
sporting goods products and sports apparel on a worldwide basis under the CCM, Tacks, and #1 Apparel trade names.


CONTACT: SLM International, Inc. Gerald B. Wasserman 514/331-5150




Rickel Names Joseph Nusim Chief Executive Officer and President


SOUTH PLAINFIELD, N.J., Sept. 17 /PRNewswire/ - href="chap11.rickel.html">Rickel Home Centers, Inc. announced today that Joseph Nusim, 61,  
has been named President and Chief Executive Officer, effective immediately. Mr. Nusim's appointment is subject to  
approval of the Bankruptcy Court in which Rickel's chapter 11 case is pending.


Mr. Nusim's career in retailing spans 30 years, and includes four years as President, CEO and Chairman of Channel Home  
Centers which was combined with Rickel in November, 1994. During his tenure at Channel, Mr. Nusim was instrumental in  
successfully helping the company emerge from chapter 11, and began an immediate expansion of its operations.


As President and Chief Executive Officer, Mr. Nusim succeeds Antonio E. Alvarez, who had served in this position since  
July when Jules Borshadel left to pursue other interests.


A spokesman for Rickel said: "The Company had been seeking an executive with extensive retailing and merchandising  
experience to improve the marketing strategy and product mix at its stores. With his thirty year career in retailing and his  
experience in the home center segment, Mr. Nusim fits this bill. In addition, his experience in turnaround situations will help  
him successfully guide Rickel through and out of the bankruptcy process."


From 1963 to 1971, Mr. Nusim served as General Merchandise Manager of Spartan Atlantic Department Stores. From 1971  
to 1984, Mr. Nusim was Executive Vice President and General Merchandising Manager of Jamesway Corporation, a  
Northeast chain of discount department stores. From 1984 to 1991, Mr. Nusim served as President, Chief Executive Officer  
and Chairman of Makro, the hypermarket division of Kmart.


After leading Channel from 1991 to 1994, Mr. Nusim has been serving as a retail consultant to several companies, including  
Scotty's Home Centers of Florida, Roses' Stores, Inc., Sun Television and Appliances, Inc., and Frankel Home Furnishings,  
Inc. He also currently serves as Director of Scotty's, Roses' and Sun Television.


Mr. Nusim received a BBA in Retailing from the City College of New York.


Rickel is a full-service home improvement retailer serving the do-it-yourself marketplace in New Jersey, Pennsylvania,  
New York and Delaware.


SOURCE Rickel Home Centers, Inc. /CONTACT: Dawn Dover or Andrea Bergofin of Kekst and Company, 212-593-2655/




Bradlees, Inc. Reports 1996 Second Quarter Results


BRAINTREE, Mass., Sept. 17, 1996 - href="chap11.bradlees.html">Bradlees, Inc. (NYSE: BLE) today reported
results for the second quarter of fiscal  
1996. Total sales for the 13 weeks ended August 3, 1996 were $386.2 million versus total sales of $437.5 million for the  
second quarter of last year, reflecting, in part, 12 fewer stores in this year's second quarter. Comparable store sales  
declined 10% for the quarter.


The loss before interest, reorganization items and income taxes for the second quarter of fiscal 1996 was $39.4 million  
compared with $28.3 million for the corresponding period of 1995. The net loss for the second quarter of fiscal 1996 was  
$82.8 million or $7.25 per share versus a net loss of $27.6 million or $2.41 per share for the prior year. The current year's  
net loss included reorganization charges related to store closings and restructuring of $40.9 million, while the second  
quarter of 1995 included an $8.0 million reorganization charge. Last year's net loss was favorably impacted by an income  
tax credit of $15.8 million. Year-to-date sales for the first half were $736.1 million versus $829.9 million in fiscal 1995.  
Year-to- date comparable store sales declined 11%.


Sales in the first half were impacted by difficulties associated with the Company's transition from low-margin commodity  
businesses to more financially viable businesses in apparel, accessories and home furnishings and the overall weak  
retailing climate, particularly in apparel. Gross margin, although higher as a percentage of net sales in the first half, was  
negatively impacted in the second quarter, primarily by higher markdowns due to the sales shortfall and a $5.vchted with the  
14 closing stores and bankruptcy expenses (primarily professional fees).


Commenting on today's announcement, Mark A. Cohen, Bradlees' Chairman and Chief Executive said, "First half results  
were disappointing. However, we are encouraged by the increase in our August comparable store sales and, particularly, by  
the success of our August Home Sale and Back-To-School campaign. August, 1996 comparable store sales (excluding the  
closing stores) were up 12.2% over August, 1995, making August the fourth consecutive month of improving comparable  
store sales trends. Also in August, 1996, the loss before interest, reorganization items and income taxes was $5.4 million  
compared to a loss of $11.3 million in August, 1995. As we refine our merchandising strategy, we will continue to improve  
customer service, improve operations and reduce expenses. We are intent on transforming Bradlees into a more fashion,  
quality and service oriented retailer than any of our competitors," said Cohen.


The Company has recently amended its Debtor-In-Possession (DIP) facility with its Chase Manhattan led bank group. These  
amendments include changes to the Company's cumulative EBITDA and minimum inventory covenants for the third and  
fourth quarters of fiscal 1996 and the first quarter of fiscal 1997. Also, as a consequence of closing 26 stores this year, the  
Company has reduced the size of its DIP facility to $200 million, consistent with its now reduced inventory requirements.


Also during the quarter, the Company was granted an extension of its period of exclusivity by the Bankruptcy Court of the  
Southern District of New York. The Company currently retains the exclusive right to file a plan of reorganization until  
February 1, 1997 and to solicit acceptance of a plan of reorganization until April 2, 1997. Bradlees, Inc., which currently  
operates 124 discount department stores in Maine, New Hampshire, Massachusetts, Connecticut, New York, New Jersey,  
Pennsylvania and Rhode Island, emphasizes a unique blend of fashionable, high quality apparel and home furnishings at  
outstanding value to its customers. Bradlees' common stock is listed and traded on the New York Stock Exchange under the  
symbol "BLE". For additional Bradlees press releases, please call PR Newswire's "News-On-Call" service at  
1-800-758-5804, extension 105750.


 


                                    BRADLEES, INC.

                         (Operating as Debtor-In-Possession)
                   CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                     (Unaudited)
                   (Dollars in thousands except per share amounts)
         
                                         13 Weeks ended        26 Weeks ended
                                      August 3    July 29   August 3,    July 29
                                        1996       1995       1996        1995
        Total sales                   $386,195   $437,488   $736,086    $829,876
        Leased sales                    16,617     16,055     28,805      28,838
        Net sales                      369,578    421,433    707,281     801,038
        Cost of goods sold             268,182    296,973    503,371     577,071
        Gross margin                   101,396    124,460    203,910     223,967
        Leased department and
         other operating income          3,677      3,715      6,434       7,070
                                       105,073    128,175    210,344     231,037
        Selling, store operating,
         administrative and
         distribution expenses         134,027    143,313    271,974     278,002
        Depreciation and amortization   10,459     13,135     21,476      26,431
         Loss before interest,
          reorganization items,
              and income taxes             (39,413)   (28,273)   (83,106)
        (73,396)
         
        Interest and debt expense        2,444      7,121      4,959      16,914
        Reorganization items            40,928      7,977     48,466       7,977
         
            Loss before income taxes       (82,785)   (43,371)  (136,531)
        (98,287)
         
        Income tax benefit                 ---     15,815        ---      38,332
         
            Net loss                      ($82,785)  ($27,556) ($136,551)
        ($59,955)
         
            Net loss per share:             ($7.25)    ($2.41)   ($11.96)
        ($5.25)
         
                                    BRADLEES, INC.
                         (Operating as Debtor-In-Possession)
                        CONDENSED CONSOLIDATED BALANCE SHEETS
                                     (Unaudited)
                                (Dollars in thousands)
         
            ASSETS                                        8/3/96    2/3/96
        7/29/95
         
        Current assets:
         Unrestricted cash and cash equivalents      $17,138   $63,012  $100,052
         Restricted cash and cash equivalents          7,350     1,194     7,048
         Total cash and cash equivalents              24,668    64,206   107,100
         Accounts receivable                          13,737    10,536    13,347
         Refundable Income Taxes                         ---    24,576       ---
         Inventories                                 256,402   282,270   274,242
         Prepaid expenses                              9,709    10,008     6,850
         Deferred income taxes                           ---       ---    39,753
         Assets held for sale                          8,954     8,954       ---
           Total current assets                          313,470   400,550
        441,292
         
        Property excluding capital leases, net       145,567   170,247   218,697
        Property under capital leases, net            30,118    37,249    59,352
         Total property, plant and equipment, net    175,685   207,496   278,049
         
        Lease interests at fair value and
         lease acquisition costs, net                182,042   186,626   237,797
        Assets held for sale                          10,153       ---       ---
        Other, net                                     3,757     3,990     1,811
         Total other assets                          195,952   190,616   239,608
         
            Total Assets                                $685,107  $798,662
        $958,949
         
                                    BRADLEES, INC.
                         (Operating as Debtor-In-Possession)
                        CONDENSED CONSOLIDATED BALANCE SHEETS
                                     (Unaudited)
                                (Dollars in thousands)
         
        LIABILITIES AND STOCKHOLDERS'
          EQUITY (DEFICIENCY)                       8/3/96    2/3/96    7/29/95
        Current liabilities:
         Accounts payable                          $147,216  $148,870  $102,260
         Accrued expenses                            66,271    63,735    42,336
         Current portion of long-term                 2,226     2,602     5,748
          Total current liabilities                 215,713   215,207   150,344
         
        Long-term liabilities:
         Obligations under capital leases            48,069    53,396    43,225
         Deferred income taxes                        8,581     8,581   117,108
         Other long-term liabilities                 24,095    26,723    29,859
          Total long-term liabilities                80,745    88,700   190,192
         
        Liabilities subject to settlement under
        the reorganization case                     569,955   539,765   516,117
         
        Stockholders' equity (deficiency):
         Common stock  11,411,167 shares outstanding
         (11,417,958 shares outstanding at 7/29/95)
         Par value                                      115       115       115
         Additional paid-in capital                 137,951   137,951   137,950
         Unearned compensation                         (420)     (793)     (983)
         Accumulated deficit                       (318,297) (181,766)  (34,308)
         Treasury stock, at cost                       (655)     (517)     (478)
         Total stockholders' equity (deficiency)   (181,306)  (45,010)  102,296
         
        Total Liabilities and Stockholders'
         Equity (Deficiency)                       $685,107  $798,662  $958,949

SOURCE Bradlees, Inc. /CONTACT: Coleman Nee of Bradlees, 617-380-8354/