Tarrant Apparel Group Agrees to Purchase B.U.M.
International, Inc. Trademarks and Other Assets
LOS ANGELES, CA--Aug. 22, 1997--Tarrant Apparel Group
(Nasdaq:TAGS), a leading provider of private label casual
apparel, today announced that it has reached an agreement in
principle with B.U.M. International,
Inc. and the official unsecured creditors committee in
B.U.M.'s Chapter 11 case, to acquire all of the assets of B.U.M.
International, Inc. and its affiliate, consisting primarily of
the B.U.M. EQUIPMENT(R) trademark, license agreements and related
rights, for $23,813,000, subject to certain adjustments.
B.U.M. International, Inc. and its affiliate, International
Blueprint, Inc., are debtors in possession in Chapter 11 cases
pending in the United States Bankruptcy Court for the Central
District of California.
The Bankruptcy Court will consider the sale to Tarrant Apparel
Group, and any objections, at a hearing to be held on September
3, 1997.
Gerard Guez, Chairman and Chief Executive Officer of Tarrant
Apparel Group, commented, "We are very enthusiastic about
the prospect of acquiring the B.U.M. EQUIPMENT(R) trademark, a
well- known brand name in the worldwide casual sportswear market.
Acquiring a recognized brand has been a key element of Tarrant's
growth strategy."
Mr. Guez continued, "We expect this acquisition, if
consummated, to provide us with numerous new business
opportunities. B.U.M. already generates income from licensing
arrangements and this transaction would present Tarrant with
opportunities for additional licensing income. We might also
offer B.U.M.-branded merchandise produced by Tarrant which could
have a higher gross margin contribution than our current product
lines. Importantly, exclusive use of the B.U.M. name would also
allow us to form strategic alliances at both retail and wholesale
levels in the U.S. and worldwide."
Tarrant Apparel Group serves both specialty retail and mass
merchandise store chains by designing, merchandising, contracting
for the manufacture of and selling casual, moderately-priced
apparel, primarily for women, under private label.
Except for historical information contained herein, the
statements in this release are forward-looking and made pursuant
to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements involve
known and unknown risks and uncertainties which may cause the
Company's actual results in future periods to differ materially
from forecasted results. Those risks include, a softening of
retailer or consumer acceptance of the Company's products,
pricing pressures and other competitive factors, or the
unanticipated loss of a major customer. These and other risks are
more fully described in the Company's filings with the Securities
and Exchange Commission.
CONTACT: Mark B. Kristof Vice President & CFO (213)
780-8250 Recorded Information (800) 655-5655 Ext.388 or Investor
Relations David Walke/Howard Zar/ Shannon Moody (212) 850-5600
Press: Carol Schneller (415) 296-7383
Finger/Matrix Curtails Operations
Pending Additional Funding
DOBBS FERRY, N.Y.--Aug. 22, 1997--
EBB:FINX), the electronic fingerprinting pioneer, Friday reported
that it has exhausted its operating funds and is temporarily
curtailing its activities until it is able to obtain additional
financing.
Thomas T. Harding, president, said the company is currently in
discussions with several investment sources familiar with the
company regarding both short- and long-term financing.
"We have fulfilled all our current orders and are
continuing to pursue additional orders and contracts from more
prospects than we've ever had," Harding said, adding,
"We're confident ongoing funds will soon become
available."
The present management of Finger/Matrix took the company out
of Chapter 11 bankruptcy two years ago and has since
re-engineered a full line of advanced electronic fingerprinting
systems for the growing international law enforcement and
commercial markets. Its largest system, a ten-printer called the
CHEK/TEN, was recently certified by the FBI and is now being
marketed here and abroad.
CONTACT: Molesworth Associates Inc. Gordon Molesworth,
520/625-0035
Phar-Mor Principal Shareholder Resolves
Ownership
YOUNGSTOWN, Ohio, Aug. 22, 1997 - Phar-Mor, Inc. (Nasdaq:
PMOR) announced that Robert M. Haft, Chairman and Chief Executive
Officer of Phar-Mor, and Avatex Corporation (NYSE: AAV) (formerly
FoxMeyer Health Corporation)
have entered into an agreement regarding Hamilton Morgan LLC, an
entity they jointly own and which beneficially owns 39.7% of
Phar-Mor's common stock. The agreement resolves issues arising
from Avatex triggering in December 1996 a buy/sell mechanism. In
exchange for 3,750,000 Phar- Mor shares and return of a voting
proxy on other Phar-Mor shares, Hamilton Morgan will: redeem the
69.8% Avatex interest in Hamilton Morgan; re-pay certain
indebtedness; and receive other consideration. If the transaction
is consummated, Avatex will beneficially hold 39.7% of Phar-Mor's
common stock.
The agreement is subject to several conditions being met
within 30 days, including Avatex obtaining an order from the
Delaware court in the Official Committee of Unsecured Creditors
of FoxMeyer Corporation vs. FoxMeyer Health Corporation (Avatex).
The agreement is also subject to Mr. Haft entering into an
acceptable severance agreement with Phar-Mor with respect to his
employment agreement, and at closing of the transaction,
resigning from the Phar-Mor Board of Directors. In addition,
Linda Haft a current director of Phar-Mor, will resign upon
consummation of the transactions. Abbey Butler and Melvyn Estrin,
the Co-Chairmen and Co-Chief Executive Officers of Avatex, are
also directors of Phar- Mor.
Robert Haft stated, "My mission of saving nearly 6,000
jobs, restoring the customer's faith in the Company and setting
the course for the future has been accomplished."
"Phar-Mor's dedicated management team has made
substantial strides in rebuilding the Company over the last two
years. We have: 1) recorded the Company's first-ever audited
profit on a pro forma basis in fiscal 1996 versus losses totaling
in excess of $200 million in the previous two years while in
bankruptcy; 2) cash on hand of approximately $80 million as of
July 1997; 3) registered positive same store sales increases for
the first time in five years; 4) developed five prototype and
remodeled 60,000 square foot food and drug "warehouse
district" stores which are generating substantial sales and
profit increases; 5) developed four new or remodeled 40,000
square foot drug stores which are generating positive sales and
profit increases; 6) plans to open two new stores and remodel 13
stores during fiscal 1998; and 7) successfully implemented a new
marketing and merchandising plan which includes 'Guaranteed
Lowest Prescription Prices or It's Free' and 'Don't Pay Drug
Store Prices'."
Mr. Haft further stated: "Our Company's talent,
resources, vision and desire are working effectively to serve our
customers, shareholders and employees."
Phar-Mor is a retail drug store chain with 104 stores in 19
states. The Company's common stock is traded on the Nasdaq
National Market under the symbol "PMOR".
SOURCE Phar-Mor, Inc./CONTACT: Gary Holmes, 212-484-7736, for
Phar-Mor; or Robert Haft of Phar-Mor, 202-424-7678/
Rymer Foods Inc.'s Plan of Reorganization
Confirmed
CHICAGO, IL - Aug. 22, 1997 - Rymer Foods Inc.'s (OTC Bulletin
Board: RYMRQ) prepackaged Chapter 11 plan of reorganization was
confirmed on August 21, 1997 by the Bankruptcy Court for the
Northern District of Illinois. The bankruptcy proceedings were
completed 45 days after the original filing on July 8, 1997.
Rymer Foods Inc. is the holding company for Rymer Meat Inc., a
Chicago- based portion controlled meat company that provides
frozen, pre-seasoned meat and tailored programs to restaurants
and institutional food service providers. Rymer Meat was not
involved in the Chapter 11 filing and has continuously operated
without interruption.
Under the Prepackaged Plan as confirmed, Rymer Foods Inc. will
implement a 25 into 1 reverse stock split and issue up to
4,300,000 shares of new common stock. All 11% senior notes will
be eliminated in exchange for new common stock. Rymer Foods Inc.
expects to complete the restructuring and issue the new common
stock by the end of September.
Mr. P.E. Schenk, Rymer Foods Inc.'s Chief Executive Officer,
commented that, "All of us here at Rymer are extremely
pleased to have this necessary step accomplished and look forward
to growing the business with the benefit of a healthy balance
sheet."
SOURCE Rymer Foods Inc. /CONTACT: Edward M. Hebert of Rymer
Foods, 773-927-7777/
RDM Sports Group, Inc. Makes Announcement
ATLANTA, GA --AUGUST 22, 1997--RDM SPORTS GROUP, INC. (NYSE:
RDM) announced that it did not make the August 15, 1997 interest
payment in the amount of $2,069,000 on its 8% Convertible
Subordinated Debentures due 2003 ("Debentures"). Under
the terms of the Indenture for the Debentures, the Company has 30
days to cure this nonpayment before an event of default occurs
but has at present no ability to make this payment.
The Company also stated that it has been experiencing
substantial cashflow deficiencies and financial difficulties, and
its manufacturing facilities have been temporarily shutdown until
this situation is resolved. At the present time, there are no
negotiations with third parties to obtain additional financing
for the Company and no such additional financing is contemplated
in the immediate future. Because of the Company's present
cashflow deficiency and its crucial financial situation,
management has had discussions regarding the possibility of
filing for bankruptcy under Chapter 11 of the Bankruptcy Act in
order to give the Company time to rearrange its operations and
return the Company to profitability.
The Company has also recently engaged the services of an
investment banker to ascertain the feasibility of selling all or
a part of the Company's operations. Discussions are ongoing as to
those possibilities. In that connection, the Company has entered
into an Option Agreement to sell its warehousing and
manufacturing facility in Opelika, Alabama. In addition, there
are ongoing negotiations for the sale of other individual assets
which are not presently necessary for the Company's present
operations.
Second Quarter operations ending June 28, 1997 reflect an
operating loss of $17,648,000 before income tax expense and loss
from extraordinary items. Sales for the Second Quarter total
approximately $40,000 versus $104,000 for the same period last
year. Part of this decrease in sales resulted from the sale of
the Bicycle Division of the Company to Brunswick Corporation in
September of 1996.
RDM is a producer of fitness equipment and a provider and
distributor of toys and team sport equipment. The trademarks or
brands under which RDM sells include Flexible Flyer,
Healthmaster, Vitamaster, MacGregor, DP, Hutch, Reach and
Forster.
CONTACT: RDM Sports Group, Inc. or Lippert/Heilshorn &
Assoc. Charles Sanders Jeffrey Volk 334/745-1265 212/838-3777