/raid1/www/Hosts/bankrupt/TCR_Public/960603.MBX BANKRUPTCY CREDITORS' SERVICE, INC.


Bankruptcy News For - June 3, 1996



  1. Jay Jacobs, Inc. Reports First Quarter Results
  2. Sizzler International files for Chapter 11





Return To The InterNet Bankruptcy Library Homepage



Jay Jacobs, Inc. Reports First Quarter Results


        


            SEATTLE, WA -- June 3, 1996 -- Jay
Jacobs, Inc.

        (NASDAQ: JAYJ) today reported results for its first quarter ended
        April 27, 1996.  Sales for the first quarter were $13,824,000
        compared to $17,105,000 for the same quarter last year.  The company
        operated 136 stores at the beginning of the quarter compared to 174
        stores at the beginning of the same quarter last year.  
        


            The company reported a loss of $1,797,000 or 30 cents per share
        compared to a loss of $1,988,000 or 34 cents per share for the first
        quarter of last year.  As a result of the decline in sales, the
        company has experienced a decline in working capital and cash flow.
        


            Jay Jacobs, Inc. is a Seattle-based specialty apparel retailer
        selling to men and women, currently operating through its 138 stores
        located in 21 states.  During the quarter, the company opened eight
        stores and closed 10 stores.


        
                       JAY JACOBS, INC. AND SUBSIDIARIES
                       Consolidated Statement of Operations

                           (dollar amounts in thousands)
                                    (Unaudited)
        

                                                 Three months ended
                                                       April
                                                 -------------------
                                                   1996       1995
                                                   ----       ----
        
        Net sales                                 $13,824     $17,105
        
        Operating costs and expenses:
          Cost of sales, buying and
        occupancy costs                            11,001      13,946
          Selling, general and
        administrative expenses                     4,639       5,215
          Interest and other income, net              (19)        (68)
                                                   ------      ------  
        Net operating expenses                     15,621      19,093
                                                   ------      ------  
        
        Income (loss) before income taxes          (1,797)     (1,988)
                                                   ------      ------   
        Earnings (loss) per share                 $ (0.30)    $ (0.34)
                                                          
        
        Weighted average number of
          shares outstanding                        6,058       5,907
                                                  -------      ------
        

                         JAY JACOBS, INC. AND SUBSIDIARIES
                             Consolidated Balance Sheet

                            (Dollar amounts in thousands)
                                    (Unaudited)

        
                                                     April 27,
        Assets                                             1996
        ------                                        ----------------
        
        Current assets:
          Cash and cash equivalents                     $     21
          Accounts receivable                                609
          Inventories                                      9,537
          Prepaid expenses                                   339
                                                         --------    
        Total current assets                              10,506
        
        Property and equipment, net                        5,910
                                                         --------    
        Total Assets                                     $16,416
                                                        
        
        Liabilities and Shareholders' Equity
        ------------------------------------
        
        Current Liabilities:
          Accounts payable                               $ 4,424
          Accrued payroll                                    230
          Accrued restructuring expenses                   2,100
          Other accrued expenses                             869
          Short Term Bank Debt                             4,089
                                                    --------    
        Total current liabilities                     11,712
                                                    --------    
        
        Deferred rental credits                              806
        
        Accrued reorganization liability                   2,355
        
        Shareholders' equity:
          Common stock                                    12,926
          Retained earnings                              (11,383)
                                                     -------
          Total shareholders' equity                       1,543
        
        Total liabilities and shareholders'         --------
         equity                                      $16,416
                                                        
        

        CONTACT:  Jay Jacobs, Inc.
                  Rex Steffey, 206/622-5400


   SIZZLER ANNOUNCES MAJOR CHANGES DESIGNED TO RETURN U.S. OPERATIONS TO
   PROFITABILITY

   
   FILES CHAPTER 11: REDUCES NUMBER OF COMPANY-OPERATED RESTAURANTS

   
   LOS ANGELES, California, June 3, 1996 -- href="chap11.sizzler.html">Sizzler International, Inc. (NYSE:
   SZ) today announced a comprehensive strategy that includes steps that
   will dramatically change the domestic operations and are expected to
   return the company to Profitability.
   


    Also, the company said that as a result of these steps its remaining
   85 domestic restaurants will be profitable on an operating basis and
   have a positive cash flow. The international operations will continue
   to provide substantial profits according to the company.
   


   Specifically, the company announced:

   


   
   Costs associated with the restaurant closings and re-organization
   will produce a $108.9 million charge or $3.92 per share to current
   year results and will contribute to Sizzler's reporting a loss for
   the fiscal year ended April 29, 1996.
   


    On a pro forma basis, the company said that the remaining 85 U.S.
   restaurants contributed approximately $120.4 million to revenues and
   approximately $5.2 million of operationg profits to results in the
   most recent four quarters.
   


    Sizzler International, Inc. now operates or licenses 451 Sizzler
   restaurants worldwide. In addition, the Company operates 93 Kentucky
   Fried Chicken (KFC) restaurants and one Italian Oven restaurant in
   Queensland, Australia.
   


    Except for historical information contained herein, the matters set
   forth in this news release are forward looking statements that are
   subject to certain risks and uncertainties that could cause actural
   results to differ materially from those set forth herein in the
   forward looking statements, including such factors, among others, as
   significant fluctations in operating results, uncertain
   profitability, uncertain market acceptance of the company's product
   offering, and intense competition.