BRAINTREE, Mass., Sept. 22, 1995 -- href="chap11.bradlees.html">Bradlees, Inc. (NYSE:
BLE) today reported results for the second quarter of fiscal l995.
Sales for the 12 weeks ended August 12, l995 were $379.3 million
compared with $407.7 million for the second quarter last year. The
operating loss for the quarter was $49.8 million compared with an
operating profit of $8.2 million in 1994. Comparable store sales
declined 15.9%. The net loss per share was $3.01 this quarter
versus net earnings of $.05 per share for the second quarter last
year.
Sales for the 28 weeks ended August 12, l995 were $881.8 million
compared with $885.9 million last year. Comparable store sales
declined 10.3%. The year-to-date operating loss was $89.8 million
versus an operating profit of $3.1 million last year. The net loss
per share for the 28 weeks this year was $5.71 versus a net loss of
$.73 last year.
Commenting on the second quarter results, Mark A. Cohen,
Chairman and Chief Executive Officer said, "Following the
significant disruption of our receipt of merchandise both prior to
and as a consequence of the Company filing for protection under
Chapter 11 of the U.S. Bankruptcy Code on June 23, 1995, Bradlees
sales and margins were adversely affected by out-of-stock conditions
and inventory imbalances across a wide range of merchandise
categories. We have been working diligently to restore inventories
to planned levels and are confident that our merchandise will be
well positioned to take advantage of the holiday shopping season.
At the close of the second quarter, the Company achieved significant
improvement in its liquidity with cash balances of $126 million with
no direct borrowings under its DIP financing facility, while vendors
and suppliers maintained existing credit terms on post- filing
shipments."
Bradlees, Inc. operates 136 discount department stores in Maine,
New Hampshire, Massachusetts, Connecticut, Rhode Island, New York,
New Jersey, Pennsylvania and Virginia. Bradlees' common stock is
listed and traded on the New York Stock Exchange under the symbol
"BLE".
NOTE: For additional Bradlees press releases, please call 800-
758-5804, extension 105750.
BRADLEES, INC.
AND SUBSIDIARIES
(Operating as Debtor-in-Possession)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Dollars in thousands except per share amounts)
12 Weeks Ended
August 12, 1995 August 13, 1994
Total sales $379,272 $407,667
Leased department sales 14,418 13,671
Net sales 364,854 393,996
Cost of goods sold 267,138 266,999
Gross margin 97,716 126,997
Leased department and other
operating income 3,531 3,566
Total 101,247 130,563
Selling, store operating and
administrative expenses 126,165 111,431
Depreciation and amortization 11,977 10,910
Earnings (loss) before interest,
taxes, bankruptcy and
conversion expenses (36,895) 8,222
Bankruptcy expenses 6,000 ---
Conversion expenses 6,880 ---
Earnings (loss) before
interest and taxes (49,775) 8,222
Interest and debt expense, net 4,667 7,142
Earnings (loss) before
income taxes (54,442) 1,080
Income tax expense (benefit) (20,018) 480
Net earnings (loss) $(34,424) $600
Net earnings (loss) per share $(3.01) $0.05
BRADLEES, INC.
AND SUBSIDIARIES
(Operating as Debtor-in-Possession)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Dollars in thousands except per share amounts)
28 Weeks Ended
August 12, August 13,
1995 1994
Total sales $881,833 $885,891
Leased department sales 30,644 29,131
Net sales 851,189 856,760
Cost of goods sold 613,997 579,637
Gross margin 237,192 277,123
Leased department and other
operating income 7,777 7,891
Total 244,969 285,014
Selling, store operating and
administrative expenses 292,140 256,454
Depreciation and amortization 28,506 25,502
Earnings (loss) before
interest, taxes,
bankruptcy and
conversion expenses (75,677) (3,058)
Bankruptcy expenses 6,000 ---
Conversion expenses 8,094 ---
Earnings (loss) before
interest and taxes (89,771) 3,058
Interest and debt
expense, net 16,848 16,707
Loss before income
tax benefit and
cumulative effect
of accounting change (106,619) (13,649)
Income tax benefit (41,410) (5,874)
Loss before cumulative
effect of accounting
change (65,209) (7,775)
Cumulative effect
of accounting
change, net of
income tax benefit --- (485)
Net loss $(65,209) $(8,260)
Net loss per share:
Loss before cumulative
effect of accounting
change $(5.71) $(0.69)
Cumulative effect
of accounting
change, net of
income tax benefit --- (0.04)
Net loss per share $(5.71) $(0.73)
BRADLEES, INC.
AND SUBSIDIARIES
(Operating as Debtor-in-Possession)
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in thousands)
August 12, Jan. 28, August 13,
1995 1995 1994
ASSETS
Current assets:
Restricted cash $7,048 $---
$---
Unrestricted cash and
cash equivalents 119,673 10,148 1,935
Total cash and cash equivalents 126,721 10,148
1,935
Accounts receivable 10,543 17,537
15,779
Inventories 296,799 306,218
299,327
Prepaid expenses 6,847 10,605
8,239
Deferred income taxes 28,587 1,421
9,501
Total current assets 469,497 345,929
334,781
Property, plant and equipment, net:
Property excluding capital
leases, net 215,167 223,333 190,611
Property under capital leases, net 61,589 59,808
58,948
Total property, plant and
equipment, net 276,756 283,141 249,559
Other assets:
Lease interests at fair value and lease
acquisition costs, net 242,265 247,485 251,398
Other, net 1,811 8,259
6,642
Total 244,076 255,744 258,040
Total assets $990,329 $884,814
$842,380
BRADLEES, INC.
AND SUBSIDIARIES
(Operating as Debtor-in-Possession)
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in thousands)
August 12, Jan. 28, August 13,
1995 1995 1994
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $115,555 $219,639
$191,443
Accrued expenses 45,515 64,520
53,917
Short-term debt --- 21,000
33,000
Current portion of capital
lease obligations & other 5,595 7,896 6,553
Total current liabilities 202,665 313,055
284,913
Long-term liabilities:
Subordinated debt --- 225,000
225,000
Obligations under capital leases
and other 42,663 64,643 59,407
Deferred income taxes 79,442 89,959
90,959
Other long-term liabilities 29,014 28,725
29,630
Total long-term liabilities 151,119 408,327
404,996
Liabilities subject to settlement
under the reorganization case 539,572 --- ---
Stockholders' equity:
Common stock - 11,417,958 shares
outstanding (11,385,254 at 1/28/95,
11,277,656 at 8/13/94)
Par value 115 113
113
Additional paid-in-capital 137,951 138,077
136,777
Unearned compensation (1,032) (1,697)
(1,349)
Retained earnings
(accumulated defecit) (39,561) 27,359 17,175
Treasury stock, at cost (500) (420)
(245)
Total stockholders' equity 96,973 163,432
152,471
Total liabilities and
stockholders' equity $990,329 $884,814 $842,380
/CONTACT: Aileen Gorman of Bradlees, 617-330-8370/
John Shaw joins the firm as a vice president in its investor
relations account group. Most recently, he held a senior executive
position at a large public relations firm specializing in financial
public relations. His previous experience includes serving as a
business journalist with Gannett News Service, and an on-air
reporter and anchor for a CBS television affiliate. Prior to that,
he served as a stockbroker with E.F. Hutton and as a captain and
communications officer in the United States Marine Corps.
Ann Julsen joins the firm as a vice president in its crisis and
corporate groups. Prior to joining Sitrick, Ms. Julsen served as
director of communications at Broad Inc. and Kaufman and Broad, Inc.
Before that, she worked for seven years at Wickes Companies, where
she held positions of increasing responsibility, including director
of public relations and director of shareholder relations. Her
experience encompasses a broad range of business situations,
including hostile takeovers and defenses, Chapter 11 reorganization,
acquisitions and divestitures, major business liquidations, product
liability, environmental and other issues. Prior to that, she
served in various media communications and public affairs positions
and worked as a reporter for several daily newspapers, primarily
covering government affairs.
"We are extremely pleased to be able to add people like John
Shaw and Ann Julsen to our team," said Michael Sitrick, chairman and
chief executive officer of Sitrick And Company. "Our growth is
limited only by our ability to attract and retain good people.
"John's talent and expertise should add significantly to our
growing investor relations practice. Ann Julsen is an experienced
professional who has proven her corporate crisis communications
abilities in the most difficult of situations. I am glad to have
her rejoin me again at this firm, after working with her at Wickes."
Sitrick And Company specializes in corporate, financial,
transactional and crisis communications and maintains offices in Los
Angeles and New York.
/CONTACT: Mike Kolbenschlag, Sandra Sternberg or Anne DeWolfe,
310-788-2850, all of Sitrick And Company/
NEW YORK--Sept. 22, 1995--The
Leslie Fay
Companies, Inc. announced today that the U.S. Bankruptcy
Court for
the Southern District of New York has granted a motion that extends
the period during which only the company and its Creditors'
Committee have the exclusive right to file a plan of reorganization
through October 31, 1995 and extends through December 31, 1995, the
period during which acceptances for a reorganization plan may be
solicited.
Leslie Fay, which has been working closely with the Creditors'
Committee to develop a plan of reorganization for more than a year,
fully expects that a plan approved by the Creditors' Committee will
be submitted to the court within the extension period barring
unanticipated delays. As previously announced, Leslie Fay intends
to sell or spin off its Sassco Fashions business and emerge from
chapter 11 restructured around its Leslie Fay Dress, Leslie Fay
Sportswear and Castleberry businesses. The restructured Leslie Fay
would be 100-percent owned by creditors and management.
John J. Pomerantz, chairman and chief executive officer of
Leslie Fay, said, "We are pleased the court has approved our motion.
We expect to be able to file a plan within this period and look
forward to concluding the company's chapter 11 case by the end of
the year."
"While the development of a plan of reorganization in
conjunction with our creditors has been a complicated and time-
consuming process," Pomerantz continued, "the Board, management and
creditors are all committed to completing this process in a timely
fashion. We at Leslie Fay are extremely appreciative of the
continued confidence shown by our customers and vendors. Their
support has been and will continue to be a key to our success."
Founded in 1947, The Leslie Fay Companies, Inc., is one of the
nation's leading manufacturers of women's apparel, including
dresses, suits and sportswear. Its brand names include Leslie Fay,
Albert Nipon, Kasper for A.S.L., Castleberry, Outlander, and HUE.
CONTACT: Kekst and Co.,
James Fingeroth or Michael Freitag, 212/593-2655
PHOENIX, Arizona, Sept. 22, 1995 -- America West Airlines (NYSE:
AWA) announced today that its Board of Directors has authorized the
purchase of up to 2.5 million shares of its Class B common stock on
the open market as circumstances warrant over the next two years.
The Company also announced it is seeking approval to distribute
approximately 2.4 million shares of its Class B common stock
following the resolution of certain claims which were disputed at
the time of its emergence from Chapter 11 bankruptcy in August 1994.
Following the approval of the stock repurchase program by the
Company's Board of Directors earlier today, W.A. Franke, chairman
and chief executive officer, said, "The stock repurchase program
reflects our belief that America West stock may be an attractive
investment opportunity for the Company, and it underscores our
commitment to enhancing long-term shareholder value. The shares
will be repurchased with cash on hand, but only if and to the extent
the Company holds unrestricted cash in excess of $200 million to
ensure that an adequate level of cash and cash equivalents is
maintained." Shares repurchased under the program will be held in
the Company's treasury and will be available for a variety of
corporate purposes, including use in connection with employee
compensation programs and a shareholder- approved contribution to
the Company's charitable foundation.
Also today, America West filed a motion with the U.S. Bankruptcy
Court seeking approval to distribute approximately 2.4 million
shares of its Class B common stock. The shares to be distributed
were originally reserved in escrow to satisfy those claims of
general unsecured creditors in the Company's 1991 bankruptcy case
not resolved at the time the Company's Plan of Reorganization became
effective in August 1994. Following the proposed distribution,
approximately 700,000 shares will remain in escrow to be distributed
upon resolution of the remaining 20 claims. America West now has
approximately 45 million shares of Class B common stock outstanding,
including the shares proposed to be distributed and those remaining
in escrow. Subject to bankruptcy court approval, the distribution
is expected to occur in October 1995.
"The distribution of these shares is one of the final pieces of
our successful financial reorganization," said Franke. Only 20
unsecured claims will remain unresolved from the more than 4,000
filed during the Chapter 11 process. With the exception of those
claims, we can finally put the bankruptcy behind us. America West's
expansion plans, announced yesterday, and the stock repurchase
program affirm the Company's focus on looking forward with a goal of
maximizing long-term shareholder value."
America West Airlines, the nation's ninth-largest carrier, flies
to more than 90 destinations in the United States, Mexico and
Canada, offering the same full service product travelers have come
to expect from national airlines but with low fares. At America
West, "It seems silly to pay more."
/CONTACT: Michael Mitchell, Manager of Corporate Communications of
America West, 602-693-5732/
ELKINS PARK, Pa., Sept. 22, 1995 -- href="chap11.mortgage.html">Mortgage and Realty
Trust (NYSE: MRT) announced today that the United States
Bankruptcy
Court for the Central District of California has confirmed its
prepackaged plan of reorganization. MRT commenced its bankruptcy
case under Chapter 11 of the Bankruptcy Code on August 18, 1995, to
implement an agreement in principle reached with certain holders of
MRT's Senior Secured Uncertificated Notes due 1995 which was
incorporated into its prepackaged plan of reorganization. The
effective date of the plan of reorganization will occur as soon as
practicable upon the completion of certain conditions and events.
MRT is a self-administered real estate investment trust with a
portfolio of over 72 commercial, industrial and other real estate
assets. MRT has offices in Elkins Park, Pennsylvania, and Burbank,
California.
/CONTACT: Daniel F. Hennessey, Treasurer of Mortgage and Realty
Trust, 215-881-1525/
COLUMBIA, Missouri -- Sept. 22, 1995 -- Toastmaster
Inc. (NYSE:
TM), manufacturer of electrical consumer appliances and time pieces,
today announced that the bankruptcy of the href="chap11.caldor.html">Caldor Corporation, a
major retailer, is anticipated to result in a charge to earnings
during the third quarter of approximately $0.06 per share.
Toastmaster had outstanding accounts receivable of approximately
$1.6 million as of the date of Caldor's bankruptcy filing.
Toastmaster has negotiated the transfer of its claim for payment in
the bankruptcy proceeding in exchange for cash from a third party
who has offered to make such a purchase. The anticipated impact on
Toastmaster's earnings was estimated after giving effect to the
successful conclusion of such negotiations.
Toastmaster Inc., with headquarters in Columbia, Mo., designs,
manufactures, markets and services a wide array of electrical
consumer appliances and time pieces under the brand names of
Toastmaster(R) and Ingraham(R).
/CONTACT: John E. Thompson of Toastmaster, 314-445-8666/
BOSTON, Sept. 22, 1995 -- A former Ipswich man,
now living
in Orlando, Florida, was sentenced today for concealing assets in
his bankruptcy.
United States Attorney Donald K. Stern stated that Ian S.
Edwards, 59, of 2327 Whispering Maple Drive, Orlando, Florida, and
formerly of Ipswich, Massachusetts, was sentenced today to 6 months
in custody at a halfway house, to be followed by six months of home
confinement as part of a three year term of supervised release. The
court also ordered Edwards to pay $25,000 in restitution and a
$10,000 fine.
Edwards was convicted in July after a three day jury trial of
one count of bankruptcy fraud for concealing from his creditors and
the bankruptcy trustee that he had an interest in a condominium
located in Barbados. The evidence presented at trial established
that Edwards deeded the condo to his son shortly after entry of a
substantial civil judgment against Edwards, then had it conveyed
back a year after his bankruptcy. During the entire time it was in
his son's name, Edwards treated the condo as his own, and continued
to claim it on his federal income tax returns.
The case was investigated by agents of the Federal Bureau of
Investigation, was referred by the U.S. Trustee in Boston, and was
prosecuted by Assistant U.S. Attorney Mark J. Balthazard of Stern's
Economic Crimes Unit.
/CONTACT: Kathleen Griffin or Anne-Marie Kent of the U.S.
Attorney's Office, 617-223-9445/