TCR_Public/970122.MBX




InterNet Bankruptcy Library - News for January 22, 1997






Bankruptcy News For January 22, 1997



  1. Grossman's reports December fourth quarter and full year sales

  2. Bradlees Announces Restructuring Steps

  3. Bullet Sports reports on subsidiary Chapter 11 filing and releases third quarter
    operating results

  4. Fruehauf Trailer Corporation enters into agreement to sell Delphos Axle Products
    Division

  5. Grossman's Inc. announces liquidity shortage




Grossman's reports December fourth quarter and full year sales


CANTON, Mass.--Jan. 22, 1997-- Grossman's Inc. (Nasdaq-GROS) today reported
December 1996 sales from ongoing operations up 5.1 percent to $28.8 million, compared
with December 1995 sales of $27.4 million. Companywide, December comparable store
sales were 4.0 percent below the 1995 level.


Sales from ongoing operations for the three months ended December 1996 totalled $89.1
million, 9.2 percent above the $81.6 million for the same period in 1995. Comparable
store sales for the three month period were 2.4 percent below the 1995 level.


Sales from ongoing operations for the year ended December 1996 totalled $337.8 million,
10.5 percent above the $306.6 million for the same period in 1995. Comparable store
sales for the year were 4.3 percent below the 1995 level.


Contractors' Warehouse


During December, the 16 Contractors' Warehouse stores reported sales of $24.4 million,
1.7 percent above the $24.0 million from 15 stores a year ago. Comparable store sales
were down 5.2 percent from the same month a year ago.


Fourth quarter sales increased 5.4 percent to $74.3 million, compared with $70.5 million
for the fourth quarter of 1995. Comparable store sales for the quarter were down 3.5
percent.


Full year 1996 sales increased 8.3 percent to $278.9 million, compared with $257.6
million for the 1995 year. Comparable store sales for the year were down 4.9 percent.


Mr. 2nd's Bargain Outlet Division December sales at the 26 Mr. 2nd's Bargain Outlet
stores increased 29.4 percent to $4.4 million, compared with $3.4 million from 21 stores
last December. Comparable store sales were up 4.7 percent from the same month a year
ago.


Fourth quarter sales increased 33.3 percent to $14.8 million, compared with $11.1 million
for the fourth quarter of 1995. Comparable store sales for the quarter were up 4.6 percent.


Full year 1996 sales increased 22.7% to $58.9 million, compared with $48.0 million for
the 1995 year. Comparable store sales for the year were down 1.1 percent.


Liquidity


In a separate release issued earlier today, Grossman's Inc. announced that it is
experiencing a severe liquidity shortage that is adversely affecting its Contractors'
Warehouse operations. Grossman's is reviewing potential sources of additional liquidity
and is exploring all available options, including seeking protection from creditors under
Chapter 11 of the U.S. Bankruptcy Code.


         
                                                 December  
                                                 December
                                                   1996      
                                                   1995  
                                                 ---------
                                                 ---------  
         SALES (in millions)
         Ongoing Operations
          Contractors' Warehouse                  $24.4      
          $24.0  Mr. 2nd's Bargain Outlet                  4.4
                  3.4
                                                  ------     
                                                  ------
           Total Ongoing Operations                28.8       
           27.4
         Closed Stores                                        
              

          Grossman's                                 NA       
          20.5
                                                  ------     
                                                  ------
         Total Grossman's Inc.                    $28.8      
         $47.9

         % OF TOTAL SALES
         Ongoing Operations
          Contractors' Warehouse                   84.7 %     
          50.1 % Mr. 2nd's Bargain Outlet                 15.3
                  7.1   
                                                 --------   
                                                 --------
           Total Ongoing Operations               100.0       
           57.2
         Closed Stores
          Grossman's                                 NA       
          42.8
                                                 --------   
                                                 --------
         Total Grossman's Inc.                    100.0 %    
         100.0 %

         SALES % INCREASE (DECREASE)
         VERSUS PRIOR YEAR          
         Ongoing Operations
          Contractors' Warehouse                    1.7 %     
          27.0 % Mr. 2nd's Bargain Outlet                 29.4
                   -    
                                                 --------   
                                                 --------
           Total Ongoing Operations                 5.1       
           22.9
         Closed Stores
          Grossman's                             (100.0)     
          (39.5)
                                                 --------   
                                                 --------
         Total Grossman's Inc.                    (39.9)%    
         (14.8)%

         COMPARABLE STORE SALES % INCREASE
         (DECREASE) VERSUS PRIOR YEAR
         Ongoing Operations
          Contractors' Warehouse                   (5.2)%     
           6.9 % Mr. 2nd's Bargain Outlet                  4.7
                (12.1)  
                                                 --------   
                                                 --------
           Total Grossman's Stores                 (4.0)      
            4.1
         Closed Stores
          Grossman's                                 NA      
          (25.5)
                                                 --------   
                                                 --------
         Total Grossman's Inc.                     (4.0)%    
         (12.3)%

         NUMBER OF STORES AT MONTH END
         Ongoing Operations
          Contractors' Warehouse                     16       
            15 Mr. 2nd's Bargain Outlet                   26  
                 21
         Closed Stores
          Grossman's                                  -       
            60
                                                 --------   
                                                 --------
         Total Number of Stores                      42       
           96
                                                     -0-  

                                           Three Months     
                                           Year Ended
                                          Ended December     
                                          December   
                                          ---------------
                                          ---------------
                                            1996    1995   
                                            1996    1995  ----
                                               ----    ----   
                                            ----   

         SALES (in millions)
         Ongoing Operations
          Contractors' Warehouse           $ 74.3  $ 70.5
          $278.9  $257.6 Mr. 2nd's Bargain Outlet          
          14.8    11.1    58.9    48.0
                                           ------  ------
                                           ------  ------
           Total Ongoing Operations          89.1    81.6  
           337.8   305.6
         Closed Stores
          Grossman's                           NA    73.5   
          48.0   364.3
                                           ------  ------
                                           ------  ------
         Total Grossman's Inc.             $ 89.1  $155.1
         $385.8  $669.9

         % OF TOTAL SALES
         Ongoing Operations
          Contractors' Warehouse             83.4%   45.4%  
          72.3%   38.4% Mr. 2nd's Bargain Outlet          
          16.6     7.2    15.3     7.2
                                           ------- -------
                                           ------- -------
           Total Ongoing Operations         100.0    52.6   
           87.6    45.6
         Closed Stores
          Grossman's                           NA    47.4   
          12.4    54.4  

                                           ------- -------
                                           ------- -------

         Total Grossman's Inc.              100.0%  100.0% 
         100.0%  100.0%

         SALES % INCREASE (DECREASE)
          VERSUS PRIOR YEAR
         Ongoing Operations
          Contractors' Warehouse              5.4 %  28.2 %  
          8.3 %  18.8 %

          Mr. 2nd's Bargain Outlet           33.3     4.7   
          22.7    10.3
                                           -------- -------
                                           ------- -------

           Total Ongoing Operations           9.2    24.4   
           10.5    17.4
         Closed Stores
          Grossman's                       (100.0)  (34.6)
          (86.8)  (27.0)
                                           -------- -------
                                           ------- -------

         Total Grossman's Inc.              (42.6)% (12.9)%
         (42.4)% (11.8)%


         COMPARABLE STORE SALES % INCREASE
          (DECREASE) VERSUS PRIOR YEAR
         Ongoing Operations
          Contractors' Warehouse             (3.5)%   9.7 %
          (4.9)%   4.3 %

          Mr. 2nd's Bargain Outlet            4.6    (5.0)  
          (1.1)    2.4
                                           -------- -------
                                           ------- -------

           Total Ongoing Operations          (2.4)    7.4   
           (4.3)    4.0
         Closed Stores
          Grossman's                           NA   (21.4)    
          NA    (9.3)
                                           -------- -------
                                           ------- -------

         Total Grossman's Inc.               (2.4)%  (9.4)% 
         (4.3)%  (3.7)%

                                              *T 

Grossman's Inc. press releases and public filings can be accessed on the Internet through
Business Wire's Home Page: http://www.businesswire.com/cnn/gros.htm


Mr. 2nd's Bargain Outlet maintains a web site for product information, store locations and
feedback: http://www.bargain-outlets.com


Grossman's Inc. operates 15 stores under the name Contractors' Warehouse in California,
Indiana, Kentucky and Ohio, and 26 stores under the name Mr. 2nd's Bargain Outlet in
Massachusetts, New York and Rhode Island.


CONTACT: Grossman's Steven J. Shapiro, 617/830-4020


        





Bradlees Announces Restructuring Steps


BRAINTREE, Mass., Jan. 22, 1997 - Bradlees, Inc. (NYSE: BLE) today announced that it
has taken further steps in its effort to reduce expenses and reengineer its operational
structure to a more appropriate and competitive size.


In conjunction with this reengineering, Bradlees will consolidate its two store management
regions and eliminate approximately 105 positions at its central office.


Bradlees also announced today that, subject to bankruptcy court approval, it will close its
store in New Hyde Park, NY within the next several months. The Company cited the
store's underperformance and disappointing sales results as the reason behind this action.


Commenting on today's announcement, Peter Thorner, Bradlees' new chairman and chief
executive officer said, "Today's cost reductions will help Bradlees achieve an expense
structure commensurate with its size and more appropriate to industry benchmarks. It
represents the first of several steps we plan to implement to restore the Company to
profitability."


Bradlees, Inc. operates 110 discount department stores in Maine, New Hampshire,
Massachusetts, Connecticut, New York, New Jersey and Pennsylvania. Bradlees' common
stock is listed and traded on the New York Stock Exchange under the symbol "BLE." For
additional Bradlees' press releases, please call 1-800-758-5804, ext. 105750,


SOURCE Bradlees, Inc. /CONTACT: Coleman Nee of Rasky & Co., 617-742-7077/




Bullet Sports reports on subsidiary Chapter 11 filing and releases third quarter operating
results


SANTA ANA, Calif.--Jan. 22, 1997--Bullet Sports International Inc. (NASDAQ/Small
Cap:PARR)("BSI") Wednesday reported that on Jan. 17, 1997, its wholly owned
subsidiary and principal operating entity, Bullet-Cougar Golf Corp. ("Bullet-Cougar")
filed for protection under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court
for the Central District of California.


The board of directors of Bullet-Cougar decided to seek bankruptcy protection after
extensive efforts by BSI to obtain necessary working capital through the issuance of
additional equity and/or debt securities and discussions with numerous potential lenders
proved unsuccessful.


These efforts were hindered by BSI's capital structure and the unwillingness of the holders
of certain classes of BSI's equity securities and of Bullet-Cougar's principal lender to
accept modifications to the terms of those equity securities and the lending agreement,
respectively.


The board of Bullet-Cougar determined that filing the Chapter 11 petition might provide
Bullet-Cougar the needed time and flexibility to restructure its operations and obtain
additional working capital.


Prior to and in contemplation of the Chapter 11 filing, Bullet- Cougar's secured loan with
Deutsche Financial Services Corp. was purchased by Clearwater Fund IV LLC, a
Delaware limited liability company ("Clearwater"), which in turn, entered into a new loan
agreement with Bullet-Cougar, maturing July 31, 1997, in the amount of $1 million (taking
into account the existing loan balance of approximately $223,000, after application of
certain collateral by the former secured lender to the principal balance)(the "Clearwater
Loan" or the "Clearwater Loan Agreement").


The Clearwater Loan proceeds are required under the Clearwater Loan Agreement to be
used to pay designated operating expenses of Bullet-Cougar during the Chapter 11
proceedings, and make certain purchases of inventory.


The Clearwater Loan Agreement contemplates that Bullet-Cougar's filing of a Chapter 11
petition will not constitute a default so long as an interim or emergency order for financing
by Clearwater is entered in such case on or before Feb. 14, 1997.


The company and Bullet-Cougar are continuing to negotiate with Clearwater regarding the
possibility of additional debtor in possession financing being provided to Bullet-Cougar
during the pendency of the Bullet-Cougar Chapter 11 proceedings, but no agreements have
been reached as of Jan. 21, 1997.


In other developments, BSI also reported its third quarter operating results, for the three
and nine months ended Nov. 30, 1996. Revenues for the three months ended Nov. 30,
1996, were $1,674,000 compared with $3,240,000 for the same period of the prior year.
Net loss for the three months ended Nov. 30, 1996, was $2,572,000 or 63 cents per
common share, compared with a net loss of $943,000 or 30 cents per common share for
the comparable prior year.


Revenues for the nine months ended Nov. 30, 1996, were $5,849,000, compared with
$12,134,000 for the same period of the prior year. Net loss for the nine months ended Nov.
30, 1996, was $4,805,000, or $1.32 per common share, compared with the net loss of
$1,785,000 or 85 cents per common share in the same period of the prior year.


The company's level of sales and marketing activities continued to be unfavorably
impacted during the third quarter as a result of continuing restrictions in its principal
lending agreement limiting available working capital. Additionally, as a result of Bullet-
Cougar's Chapter 11 filing and circumstances relating to this event, realization of assets
and satisfaction of liabilities is subject to uncertainty.


A plan of reorganization could materially change the amounts reported as historical
operating results, which do not give effect to adjustments to the carrying values of assets
and liabilities, which may be necessary as a consequence of the confirmation and
implementation of a plan of reorganization.


The ability of Bullet-Cougar to continue as a going concern is dependent on, among other
things, confirmation of an acceptable plan of reorganization, future profitable operations
and the ability to generate sufficient cash from operation and obtain financing sources to
meet future obligations.


The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for certain
qualifying forward-looking statements. Certain information included in this news release
and other materials filed or to be filed by the company with the Securities and Exchange
Commission (as well as certain information included in oral statements or other written
statements made or to be made by the company) contains statements that are
forward-looking, such as statements relating to projected financial items and results, plans
for future expansion and other business development activities, capital spending or
financing sources, capital structure, the effects of a plan of reorganization in Chapter 11
proceedings which have been commenced by Bullet-Cougar, the company's principal
operating subsidiary, and regulation and competition.


Such forward-looking information involves important risks and uncertainties that could
significantly impact anticipated results in the future and, accordingly, such results may
materially differ from those expressed in any forward-looking statements by or on behalf
of the company.


Bullet Sports International Inc. has headquarters in Santa Ana. The company is a full-line
manufacturer of golf equipment and accessories, which include clubs, bags and golf balls.


CONTACT: Bullet Sports International Inc., Santa Ana 714/966-0310 or Cohn & Wolfe
Public Relations (media only) Deborah Smith, 310/226-3087




Fruehauf Trailer Corporation enters into agreement to sell Delphos Axle Products
Division


INDIANAPOLIS, IN --Jan. 22, 1997--Fruehauf Trailer Corporation today announced that
it has entered into an agreement with Holland Hitch Company of Holland, Michigan to sell
the assets of its Delphos Axle Products Division. A motion seeking Bankruptcy Court
authorization of the sale of the assets and related bidding procedures was filed today with
the U.S. Bankruptcy Court for the District of Delaware. The assets to be sold consist
primarily of the real and personal property and intellectual property used in the Delphos
axle business and related inventory. The purchase price is $13 million plus an amount for
working capital at the closing date.


Pursuant to the proposed bidding procedures filed with the Bankruptcy Court, the
Company will continue to entertain competing written bids to purchase the Delphos assets
and subsequently will conduct an auction among Holland and the other parties submitting
competing bids. The auction will be conducted at the offices of Morris, Nichols, Arsht &
Tunnell, attorneys for Fruehauf, located at 1201 North Market Street, 18th Floor,
Wilmington, Delaware at a date to be determined by the Court.


Fruehauf Trailer Corporation filed a voluntary petition under chapter 11 of the U.S.
Bankruptcy Code on October 7, 1996 and currently operates its business as a debtor in
possession. Fruehauf is a manufacturer of truck trailers, producing, marketing, and
servicing the industry's widest range of dry freight van, platform, dump and liquid and dry
bulk tank trailers. Among the largest suppliers of trailer parts in North America, Fruehauf
products are sold throughout the truck trailer industry's largest Company-owned dealer and
authorized independent dealer network in North America.


CONTACT: Fruehauf Trailer Corporation, Indianapolis Gregory G. Fehr/Michael D.
Picchi, 317/630-3000




Grossman's Inc. announces liquidity shortage


CANTON, Mass.--Jan. 22, 1997--Grossman's Inc. (Nasdaq-GROS) announced today that
it is experiencing a severe liquidity shortage that is adversely affecting its Contractors'
Warehouse operations. Grossman's is reviewing potential sources of additional liquidity
and is exploring all available options, including seeking protection from creditors under
Chapter 11 of the U.S. Bankruptcy Code.


Grossman's Inc. press releases and public filings can be accessed on the Internet through
Business Wire's Home Page: http://www.businesswire.com/cnn/gros.htm


Mr. 2nd's Bargain Outlet maintains a web site for product information, store locations and
feedback: http://www.bargain-outlets.com


Grossman's Inc. operates 15 stores under the name Contractors' Warehouse in California,
Indiana, Kentucky and Ohio, and 26 stores under the name Mr. 2nd's Bargain Outlet in
Massachusetts, New York and Rhode Island.


CONTACT: Steven L. Shapiro VP - Controller (617) 830-4020