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/ -
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/