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ALEXANDER'S TO CEASE RETAILING OPERATIONS AND FILE FOR COURT PROTECTION

ALEXANDER'S TO CEASE RETAILING OPERATIONS AND FILE FOR COURT PROTECTION
 NEW YORK, May 15 /PRNewswire/ -- Alexander's, Inc. (NYSE: ALX) today announced that, after 64 years in the retailing business, it has closed all 11 of its stores and has ended its retail operations. In addition, the company said that it, together with 16 subsidiaries, has filed voluntary petitions under Chapter 11 of the United States Bankruptcy code in the U.S. Bankruptcy Court for the Southern District of New York.
 Commenting on the decision, Alexander's Chairman, Robin Farkas, said, "The decision to cease retailing operations was a very difficult one for the company to make and follows every effort to try to improve retail performance. However, Alexander's retailing operations have sustained losses for three years in a row. In the last 24 months alone, losses reached approximately $40 million, and were projected to continue. Alexander's retail business is not viable, and there is little prospect of turning it around. It is simply no longer capable of producing the cash flow necessary to meet its ongoing business obligations.
 "We deeply regret the impact store closings will have on our employees and the communities we serve. But as our stores are situated on prime retailing sites, we fully expect that the positions lost will be only temporary, with other major retailers entering the properties. Our decision to close Alexander's stores will maximize the value of our excellent store locations," concluded Farkas.
 Alexander's will seek court approval to commence going out of business sales as soon as possible. Employees will receive severance in accordance with the company's policies. The company will also provide out placement assistance.
 Alexander's will seek to emerge from bankruptcy as a real estate operating company.
 -0- 5/15/92
 /CONTACT: Roanne Kulakoff of Kekst and Company, 212-593-2655, for Alexander's/
 (ALX) CO: Alexander's, Inc. ST: New York IN: REA SU:


SH-TS -- NY001 -- 0622 05/15/92 09:42 EDT
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Publication:PR Newswire
Date:May 15, 1992
Words:319
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