InterNet Bankruptcy Library - News for September 5, 1997

Bankruptcy News For September 5, 1997

  1. Levitz to Reorganize Under Chapter 11

  3. Rowe Furniture Reports Levitz-RelatedCharge; Shipments to Levitz to Resume

  5. LADD Reports Levitz Credit Exposure

Levitz to Reorganize Under Chapter 11

BOCA RATON, Fla.--Sept. 5, 1997--Levitz
Furniture Incorporated
(NYSE:LFI) today announced it had
filed a voluntary petition for reorganization under Chapter 11 of
the Federal Bankruptcy Code in the United States Bankruptcy Court
in the District of Delaware, Case No.97-1842.

The Company also indicated that it had secured a debtor-in-
possession (DIP) financing commitment of $260 million from a
group of lenders led by B.T. Commercial Corporation. The Company
said it expects to meet its day to day operating needs, including
prompt payment of post petition invoices and to pay current
employees wages and benefits in an ongoing manner.

Michael Bozic, Chairman and CEO said, "Over the past six
months we have examined a number of alternatives to this
difficult decision. Operating under Chapter 11 protection will
enable the Company to continue the turnaround and repositioning
efforts begun last year. It also affords us the opportunity to
restructure the heavy debt load which has been consuming our cash
flow, and to reorganize and strengthen our business

"As part of our planned reorganization, we will
discontinue operations in the following under-performing markets:
Atlanta - Cincinnati - Jacksonville - Reno - Salt Lake City -
Fort Myers, and Houston and close one smaller satellite store in
Potomac, VA and one in East Ft. Lauderdale. The main Ft.
Lauderdale store was recently remodeled and remains a major
contributor in the South Florida market."

"In spite of these difficult times, we are very
optimistic about our Company's future. Chapter 11 reorganization
will allow us to concentrate our efforts on building an even
greater presence in our major markets as America's Leading
Furniture Superstore. In addition, we will continue efforts to
upgrade our furniture assortments with fashionable merchandise
from quality worldwide suppliers."

"In the meantime, we expect hundreds of truckloads of
furniture will leave factories over the next few days to fill
customer orders and replenish inventories. We fully expect to
fill all new as well as previously sold customer orders as soon
as shipments arrive."

Levitz is a leading specialty retailer of furniture in the
United States with a chain of warehouses, showrooms and satellite
stores located in major metropolitan areas. More information
about Levitz is available via the World Wide Web at

This press release contains certain forward-looking statements
within the meaning of the Private Securities Litigation Reform
Act of 1995 with respect to the financial condition, results of
operations and business of Levitz. These forward-looking
statements involve certain risks and uncertainties. No assurance
can be given that any such matters will be realized. Factors that
may cause actual results to differ materially from those
contemplated by such forward-looking statements include, among
others, the following possibilities: (I) competitive conditions
in the industry in which Levitz operates; and (II) general
economic conditions that are less favorable than expected. -0-

NOTE TO EDITORS: In the World Wide Web address noted in this
news release, there is a double slash between http: and These symbols may not appear properly in some

CONTACT: Levitz Furniture Incorporated Patrick J. Nolan Sr.
Vice President Finance 561/994-5151

Rowe Furniture Reports Levitz-Related
Charge; Shipments to Levitz to Resume

MCLEAN, Va., Sept. 5, 1997 - Rowe Furniture Corporation (NYSE:
ROW) said today that the decision by Levitz
Furniture Corp.
(NYSE: LFI), a major customer, to seek
protection under Chapter XI of the Bankruptcy Law would result in
a write-down of current receivables but should otherwise have a
minimal impact on the Company's activities. Rowe added that it is
resuming shipments to the furniture retailing chain.

Rowe said that current outstanding receivables from Levitz
amount to approximately $3.9 million, as a result of which the
Company anticipates taking an after-tax charge to third quarter
earnings (ended August) of approximately $2.4 million, or $0.18 a

The Company added that it will resume shipments to Levitz
since new financing is in place. "We have always had a high
regard for Levitz, and we continue to believe in the company's
future," said G.M. Birnbach, Rowe's Chairman of the Board
and President.

Rowe said that the above indicated charge will have little
impact on its balance sheet, which as of June 2, 1997 included
net working capital of approximately $20 million, no long-term
debt and shareholders equity in excess of $40 million. In
addition, the Company maintains committed bank credit lines of
$22 million, of which $1.6 million was outstanding as of June 2,

Rowe Furniture Corporation is a major manufacturer of medium-
priced, quality upholstered furniture which is sold throughout
the U.S. and abroad.

SOURCE Rowe Furniture Corporation /CONTACT: Gerald M.
Birnbach, Chairman of the Board and President, 703-847-8670, or
Arthur H. Dunkin, Secretary-Treasurer, 540-375- 3516, both of
Rowe Furniture; or Steven S. Anreder of Anreder Hirschhorn Silver
and Company, 212-421-4020, for Rowe Furniture/

LADD Reports Levitz Credit Exposure

HIGH POINT, N.C., Sept. 5, 1997 - LADD Furniture, Inc.
(Nasdaq: LADF) today reported that it currently has approximately
$450 thousand of trade receivables outstanding from furniture
retailer Levitz Furniture
(NYSE: LFI), which today filed for protection
from its creditors under Chapter 11 of the Federal bankruptcy

LADD president and CEO Fred L. Schuermann, Jr. said, "Our
credit exposure to Levitz is substantially lower than it was at
the peak earlier this year, and these receivables are adequately
reserved at the present time." Schuermann said LADD has been
receiving numerous inquiries from both the news media and the
financial community regarding the Levitz situation and decided to
publicly disclose the company's credit exposure to Levitz, even
though the Levitz bankruptcy is not expected to have a material
financial effect on LADD. He added, "We stopped shipping
products to Levitz during August, when the extent of their cash
shortfall became apparent, and this will result in some reduction
in our third quarter sales level, even if we resume our Levitz
shipments in the near future."

Headquartered in High Point, NC, LADD is one of the largest
North American manufacturers of residential furniture. The
company markets its wide range of residential wood and
upholstered furniture domestically under the major brand names
American Drew, Barclay, Clayton Marcus, Lea, Pennsylvania House
and Pilliod, and exports these same brand name products worldwide
through LADD International. Under the American of Martinsville
name, LADD is also one of the world's leading suppliers of guest
room furniture to the hotel/motel industry, as well as to health
care and assisted- living facilities, retirement homes and
governmental and university dormitory markets. LADD also owns and
operates LADD Transportation, a support company. LADD's stock is
traded on the Nasdaq Stock Market under the symbol LADF.

SOURCE LADD Furniture, Inc./CONTACT: John J. Ong, LADD
Furniture, Inc., 910-888-6353, or E- mail: /LADD
Furniture, Inc.'s press releases available through Company News
On- Call by fax, 800-758-5804, ext. 501325, or at
http://www.prnewswire.comor via LADD's Internet