TCR_Public/970502.MBX





InterNet Bankruptcy Library - News for May 2, 1997







Bankruptcy News For May 2, 1997




        
  1. Caldor reports fourth quarter and
            fiscal 1996 results and the extension of its DIP facility
            

  2.     
  3. International Home Foods to acquire
            Bumble Bee Seafoods in a transaction valued at $163
            million

  4.     
  5. International Home Foods, Inc. to
            Acquire Bumble Bee Seafoods, Inc.






Caldor reports fourth quarter and fiscal
1996 results and the extension of its DIP facility



NORWALK, Conn.--May 2, 1997--The
Caldor Corporation
(NYSE: CLD) today announced its financial
results for the thirteen and fifty-two week periods ended
February 1, 1997.



The Company also reported that it has received a commitment
for an extension of its DIP facility through June 15, 1998,
subject to Bankruptcy Court approval. The $450 million facility
is being provided by the Company's bank group led by Chase
Manhattan Bank as agent.



For fiscal 1996, the Company's operating loss (results before
interest, taxes, extraordinary and reorganization items) was
$57.8 million, compared to an operating loss of $140.8 million in
fiscal 1995. The Company s operating profit for the fourth
quarter of fiscal 1996 was $7.8 million, versus an operating loss
of $112.7 million in the fourth quarter of fiscal 1995 when the
Company took significant reorganization charges.



The net loss for fiscal 1996 was $185.3 million, or $10.91 per
share, compared to a net loss of $301.0 million, or $17.79 per
share, for fiscal 1995. The Company's net loss for the fourth
quarter of fiscal 1996 was $65.7 million, or $3.86 per share,
compared to a net loss of $257.4 million, or $15.20 per share, in
the fourth quarter of fiscal 1995.



The net loss for fiscal 1996 included reorganization charges
of $87.5 million, compared to $170.7 million in fiscal 1995.
Reorganization charges for the fourth quarter of fiscal 1996 were
$62.1, compared to $166.1 million for the fourth quarter of
fiscal 1995. The reorganization charges for fiscal 1996 consisted
primarily of provisions for rejected leases for the closing of
four stores in fiscal 1997, as well as related asset write-offs.
The charge also included provisions for the employee retention
program, professional fees and other bankruptcy-related items.
The reorganization charges for fiscal 1995 consisted principally
of provisions for rejected leases for 26 properties, including
the 12 store closings in 1996, and the decision not to proceed
with other planned facilities, as well as related asset
write-offs. The charge also included provisions for the employee
retention program, professional fees and other bankruptcy-related
items.



The net losses for the fiscal year and fourth quarter of
fiscal 1995 included income tax benefits of $59.8 million and
$35.2 million, respectively, as well as extraordinary losses of
$8.4 million and $3.2 million, respectively.



For the fifty-two weeks ended February 1, 1997, net sales were
$2.60 billion compared to $2.77 billion in fiscal 1995 (53 weeks
ended February 3, 1996). Comparable store sales for fiscal 1996
declined by 5.3% on a comparable 52 week basis from 1995. For the
fourth quarter of fiscal 1996, net sales were $843.1 million
compared to $939.1 million for the fourth quarter of fiscal 1995.
Comparable store sales declined by 7.8% for the fourth quarter,
on a comparable 13 week basis.



The comparable store sales decline was primarily attributable
to changes in the Company's marketing strategy including the
discontinuance of one-day sale events, mid-week circulars and
coupon sales that were neither profitable nor compatible with the
Company's long-term marketing strategy. In addition, five fewer
Christmas shopping days, unseasonably warm weather in the
Northeast and an intensely competitive retail environment
contributed to the decline in comparable store sales for the
fiscal month of December.



Warren Feldberg, Chairman and Chief Executive Officer of
Caldor, commented, "Fiscal 1996 was a year of tremendous
change for Caldor. We undertook a comprehensive evaluation of our
business and developed a new Five-Year Business Plan to return
the Company to long-term profitability. We are refocusing our
strategies as a full-line, upscale discount retailer and are
making solid progress in achieving the goals set forth in the
Plan. These include improving gross margins, revamping
advertising and marketing programs, improving in-stocks, raising
customer service levels and achieving greater operating
efficiencies and cost reductions.



"The extension of our DIP facility provides significant
liquidity as we move ahead with our plans. Moreover, we are very
pleased with the continued support of our bank group and our
suppliers," Mr. Feldbergsaid.



Recently, Caldor announced the extension of its exclusivity
period through September 1, 1997, and the period for which it can
solicit acceptances for the reorganization plan through October
30, 1997.



The Caldor Corporation is the fourth largest discount
department store chain in the U.S., with annual sales of
approximately $2.6 billion and approximately 22,000 Associates.
It currently operates 157 stores in ten East Coast and
Mid-Atlantic states. With a strong consumer franchise in high
density urban/suburban markets, Caldor offers a diverse
merchandise selection, including both softline and hardline
products.



                      The Caldor Corporation and
                      Subsidiaries
                       Consolidated Statements of
                       Operations
                     (Dollars in thousands,
                     except per share data)


                               Fourth Quarter
                               Ended  Fiscal Year
                               Ended
                                 Feb. 1,    Feb.
                                 3,    Feb. 1,   
                                 Feb. 3,
                                  1997       1996
                                        1997     
                                   1996
                               (13 Weeks) (14
                               Weeks) (52 Weeks)
                               (53 Weeks)


        Net sales                    $843,088  
        $939,059 $2,602,456 $2,765,525 Cost of
        goods sold            647,158    796,544
        1,935,500 2,131,281 SG&A expenses, net of
           depreciation and
           amortization               174,324   
           232,062    669,434
        713,916
        Depreciation and
           amortization                13,784    
           23,147     55,323
        61,081
        Operating earnings (loss)       7,822  
        (112,694)   (57,801) (140,753) Interest
        expense, net          10,885     10,519  
          39,502 40,973 Loss before
           reorganization items,
           income taxes and
           extraordinary items         (3,063)
           (123,213)   (97,303)
        (181,726)
        Reorganization items           62,101   
        166,094     87,522 170,731 Loss before
           income taxes and
           extraordinary items        (65,164)
           (289,307)  (184,825)
        (352,457)
        Income tax provision (benef       500   
        (35,174)       500 (59,825) Loss before
           extraordinary items        (65,664)
           (254,133)  (185,325)
        (292,632)
        Extraordinary loss                       
        (3,232) (8,396) Net loss                 
           ($65,664) ($257,365) ($185,325)
        ($301,028) Per Share Amounts: Loss before
           extraordinary items         ($3.86)  
           ($15.01)   ($10.91)
        ($17.30)
        Extraordinary loss                       
        ($0.19) ($0.49) Net loss                 
             ($3.86)   ($15.20)   ($10.91)
        ($17.79) Weighted average common and
           common equivalent shares
           outstanding                 17,046    
           16,929     16,994
        16,918


                            The Caldor
                            Corporation and
                            Subsidiaries
                                Consolidated
                                Balance Sheets
                                   (Dollars in
                                   thousands)


                                            Feb.
                                            1,   
                                            Feb.
                                            3,
                                             1997
                                                 


                                              199
                                             6
        ASSETS
        Current assets:
           Cash and cash equivalents            
           $27,477    $25,577 Restricted cash    
                               5,254 Accounts
           receivable                    12,216  
             18,059 Merchandise inventories      
                   450,499    499,948 Assets held
           for disposal                8,177    
           25,265 Refundable income taxes        
                  13,040      5,380 Prepaid
           expenses & other
          current assets                     
          17,422     17,047
            Total current assets            
            534,085    591,276
        Property and equipment, net             
        508,071    551,977 Debt issuance costs   
                            2,516      4,674
        Deferred income taxes                    
                   16,626 Other assets           
                           5,851      9,466
                                          $1,050,
                                          523
                                          $1,174,
                                          019


        LIABILITIES AND STOCKHOLDERS' EQUITY
        (DEFICIT) Current liabilities:
           Accounts payable and
          accrued expenses                 
          $214,938   $227,075
           Other accrued liabilities             
           64,478     52,836 Borrowings under
           revolving
          credit agreement                  
          152,000     40,000
           Current maturities of long-term deb   
              550
            Total current liabilities       
            431,966    319,911
        Long-term debt                           
        18,463      8,640 Other long-term
        liabilities               28,322    
        25,158 Liabilities subject to compromise
              719,980    783,102 Total
        stockholders' equity (deficit)   
        (148,208)    37,208
                                          $1,050,
                                          523
                                          $1,174,
                                          019
        Footnotes:


(1) EBITDAR (Earnings before interest, taxes, depreciation,
amortization and reorganization) for the thirteen weeks ended
February 1, 1997 was a profit of $21.9 million compared to a loss
of



$86.6 million in the 14 weeks ended February 3, 1996. For the
fifty-two weeks ended February 1, 1997, EBITDAR was a profit of
$1.5 million compared to a loss of $75.0 million for the 53 weeks
ended February 3, 1996. (2) Certain items previously reported in
the accompanying financial statements have been reclassified to
conform with the current year's classifications.






International Home Foods to acquire Bumble
Bee
Seafoods in a transaction valued at $163 million



DALLAS, TX--May 2, 1997--Hicks, Muse, Tate & Furst
Incorporated, a leading private investment firm, today announced
that one of its portfolio companies, International Home Foods,
Inc., a New Jersey based manufacturer and marketer of branded
food products, has agreed to acquire the ongoing canned seafood
business of Bumble Bee Seafoods, Inc., in a transaction valued at
approximately $163 million in cash and the assumption of certain
liabilities of Bumble Bee. Hicks Muse acquired International Home
Foods from American Home Products Corporation for approximately
$1.3 billion in a transaction completed in November 1996.



Bumble Bee is one of the world's largest distributors of
canned seafood products and is the number two tuna producer in
the United States. The company, which is a subsidiary of
Thailand's Unicord Public Company Limited, employs approximately
3,000 people in processing plants in Mayaguez, Puerto Rico; Santa
Fe Springs, Calif.; and Manta, Ecuador; procurement offices in
Edmonds, Washington and Tokyo, Japan; and its corporate offices
in San Diego, Calif. Bumble Bee's principal products include
canned tuna and salmon marketed under the Bumble Bee brand name.



To facilitate its financial restructuring, and thereby
expedite completion of the sale, which is expected to close
within 45 to 60 days, Bumble Bee has filed for protection under
Chapter 11 of the Federal Bankruptcy Code. It is anticipated that
under the reorganization, Bumble Bee will continue to function on
a business- as-usual basis. Bumble Bee has obtained
debtor-in-possession financing of $83.5 million from Heller
Financial Inc., which will allow Bumble Bee to maintain normal
day-to-day operations, including payment of its trade credit
obligations.



Alan B. Menkes, a Managing Director of Hicks Muse and a
Director of International Home Foods, said: "This
transaction represents the first add-on acquisition since we
acquired International Home Foods. We plan to further grow
International Home Foods by continuing to execute our
buy-and-build strategy in the branded food products
business."



C. Dean Metropoulos, Chief Executive Officer of International
Home Foods, said: "The acquisition of Bumble Bee will add to
International Home Foods' strong portfolio of leading brands and
will result in significant synergies in manufacturing, marketing,
distribution and administration."



John Batt, President and Chief Executive Officer of Bumble
Bee, said: "The purchase by International Home Foods will
enable Bumble Bee to continue its strong presence in the United
States, improve operational efficiencies and strengthen its
competitive position."



Bumble Bee filed its petition in the U.S. Bankruptcy Court of
the Southern District of California in San Diego. The transaction
is subject to certain terms and conditions, and entry of
appropriate Bankruptcy Court orders.



International Home Foods is a leading North American
manufacturer and marketer of shelf-stable food products. Its
diversified, well-established portfolio of brand name products
includes, among others, Chef Boyardee canned pastas, Pam cooking
spray, Polaner fruit spreads, Gulden'smustard, Jiffy Pop popcorn,
Ranch Style beans, Luck'sbeans, Dennison's chili, Crunch 'n Munch
glazed popcorn and Campfire marshmallows and marshmallow crisp
rice bars.



Since its formation in 1989, Hicks, Muse, Tate & Furst
Incorporated has completed or currently has pending more than 70
transactions with a total capital value of approximately $19
billion. Headquartered in Dallas, the firm also has offices in
New York, St. Louis and Mexico City.



CONTACT: Roy Winnick Kekst and Company 212-593-2655






International Home Foods, Inc. to Acquire Bumble
Bee
Seafoods, Inc.



SAN DIEGO, CA - May 2, 1997 - International Home Foods, Inc.
and Bumble Bee Seafoods, Inc. today announced that they have
entered into an agreement for the purchase by International Home
Foods of Bumble Bee's ongoing canned seafood business. Subject to
the terms of the agreement, International Home Foods will acquire
substantially all of the assets of Bumble Bee and its
subsidiaries for $163 million in cash and the assumption of
certain liabilities of Bumble Bee, including trade payables.



"The purchase by International Home Foods will enable
Bumble Bee to continue its strong presence in the United States,
improve operational efficiencies and strengthen its competitive
position," said John Batt, president and chief executive
officer of Bumble Bee. C. Dean Metropoulos, chief executive
officer of International Home Foods, said that "the
acquisition of Bumble Bee will add to International Home Foods'
strong portfolio of leading brands and will result in significant
synergies in manufacturing, marketing, distribution and
administration."



Under the terms of the agreement, Bumble Bee Seafoods has
commenced proceedings under chapter 11 of the Bankruptcy Code for
authorization to consummate the sale. "Bumble Bee's key
purpose in commencing chapter 11 proceedings is to facilitate the
sale process," Mr. Batt noted. "It is expected that the
chapter 11 proceedings will have virtually no impact on the
operations of the company and the sale hopefully will close
within 45 to 60 days. Pending completion of the sale, we will
continue to operate our plants as before. The Bumble Bee brand
has been the mark of premium- quality seafood products in the
U.S. for 100 years, and we intend for it to continue to be so for
many years to come."



To ensure that customer and creditor relationships remain
intact, Bumble Bee has received commitments for $83.5 million in
debtor-in-possession financing from Heller Financial, Inc., which
has served as the company's primary lender since 1989. The
company said that the additional financing is intended to provide
continued funding for fish and processing supplies, as well as
the day-to-day operations of the company. Mr. Batt emphasized
that the company's customers, which include virtually every major
supermarket chain in the country, should have an uninterrupted
supply of canned albacore and light tuna and other high-quality
canned seafood products.



Mr. Batt stated, "Bumble Bee's management and financial
advisors at Greif & Co. have studied various recapitalization
alternatives for some time as a means of improving the company's
capital structure. While our business has been profitable on an
operating basis, interest costs related to our debt have severely
impacted earnings and weighed heavily on the company's ability to
grow. We believe the sale to International Home Foods is in the
best interests of the company, its suppliers and customers. Our
suppliers, in particular, will be pleased to know that
International Home Foods intends to assume Bumble Bee's
pre-petition obligations and pay our suppliers in full shortly
after the closing of the sale."



Bumble Bee filed its petition in U.S. Bankruptcy Court for the
Southern District of California in San Diego. Not included in the
filing was Bumble Bee's Ecuador affiliate, SEAFMAN. The
transaction is subject to certain terms and conditions and entry
of appropriate Bankruptcy Court orders.



Bumble Bee is one of the world's largest distributors of
canned seafood products. It is the number one brand in the
premium albacore segment and the number two tuna producer in the
United States. The company, which is a subsidiary of Thailand's
Unicord Public Company Limited, employs approximately 3,000
people in processing plants in Mayaguez, Puerto Rico; Santa Fe
Springs, Calif.; and Manta, Ecuador; procurement offices in
Edmonds, Washington and Tokyo, Japan; and its corporate offices
in San Diego, Calif. Unicord acquired Bumble Bee in 1989 from
Grand Metropolitan Corp's. Pillsbury division in a highly
leveraged transaction.



International Home Foods is a leading North American
manufacturer and marketer of shelf-stable food products. Its
diversified, well-established portfolio of brand name products
includes, among others, Chef Boyardee canned pastas, Pam cooking
spray, Polaner Fruit Spreads, Gulden's mustard, Jiffy Pop
popcorn, Ranch Style beans, Luck's beans, Dennison's chili,
Crunch 'n Munch glazed popcorn and Campfire marshmallow crisp
rice bars.



SOURCE Bumble Bee Seafoods Inc. /CONTACT: Sandra Sternberg or
Ann Julsen of Sitrick And Company, 619-550-4101 or 310-788-2850/