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InterNet Bankruptcy Library - News for May 1, 1997

Bankruptcy News For May 1, 1997

  1. Trading in Bradlees' Stock to be

  3. Grossman's secures final approval of
            DIP financing

Trading in Bradlees' Stock to be

BRAINTREE, Mass., May 1, 1997 - Bradlees,
(NYSE: BLE) today said that its Form 10-K, which it
expects to file on May 2, will indicate that new stock is likely
to be issued and the current common stock canceled under any
future Chapter 11 plan of reorganization of the Company. The
Company believes that it is highly unlikely that current equity
holders would receive any distribution under such a plan of

On the basis of such disclosure, and as a result of earlier
discussions with the New York Stock Exchange concerning the
Company's inability to meet current listing criteria, the NYSE,
effective immediately, will suspend trading in the Company's
common stock.

SOURCE Bradlees, Inc. /CONTACT: Bill Roberts of Bradlees,

Grossman's secures final approval of
DIP financing

CANTON, Mass.--May 1, 1997--
Grossman's Inc.
(Nasdaq-GROS) yesterday obtained final
approval by the U.S. Bankruptcy Court for the District of
Delaware for debtor-in- possession ("DIP") financing in
the amount of up to $50 million from GDI Company, Inc. An
affiliate of GDI, JELD-WEN, inc., is a major supplier to
Grossman's, and three JELD-WEN executives are three of the seven
members of the Grossman's Board of Directors. The chairman of
JELD-WEN is a significant shareholder of Grossman's, and other
JELD-WEN affiliates extended pre-bankruptcy secured loans to

Pursuant to interim financing orders entered by the Bankruptcy
Court on April 9 and 10, 1997, Congress Financial Corporation,
Grossman's principal pre-bankruptcy revolving credit lender,
continued to extend credit on essentially pre-bankruptcy terms
under a revolving loan facility in the amount of up to $50
million, and GDI made available up to $11 million in advances.
Under the terms of the GDI DIP Facility approved by yesterday's
final order of the Court, GDI purchased Congress' pre-petition
loan position and acquired its pre-petition interest in real
estate and other assets of Grossman's. This GDI DIP Facility is
in addition to the approximately $6 million of real estate
secured pre-bankruptcy loans from GDI. Prospectively, Grossman's
is authorized to utilize cash collateral and draw on the
revolving DIP facility in amounts tied to accounts receivables
and inventory levels. Post-petition advances are secured by all
the assets of Grossman's and a superpriority administrative

Grossman's Inc. operates 15 stores under the name Contractors'
Warehouse in California, Indiana, Kentucky and Ohio, and 28
stores under the name Mr. 2nd's Bargain Outlet in Massachusetts,
New York and Rhode Island.

Statements contained in this release that are not based on
historical fact are "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995. Important factors, beyond Grossman's control, that could
cause actual results to differ materially from those in the
forward- looking statements include, but are not limited to, the
need for further Bankruptcy Court approvals, absence of default
under the DIP facility, competition, stability of customer
demand, and the sufficiency of its capital resources. Undue
reliance should not be placed on these forward-looking
statements, which speak only as of the date hereof. Grossman's
undertakes no obligation to publicly release revisions to these
forward-looking statements to reflect events or circumstances
after the date hereof or to reflect the occurrence of
unanticipated events.

Grossman's Inc. press releases and public filings can be
accessed on the Internet through Business Wire's Home Page:

Mr. 2nd's Bargain Outlet maintains a web site for product
information, store locations and feedback:

CONTACT: Grossman's Inc. Steven L. Shapiro, 617-830-4020