Best Products commences Chapter 11 Case.RICHMOND, Va.--(BUSINESS WIRE)--Sept. 24, 1996--Best Products Co., Inc. (Nasdaq: BEST) today announced that it has commenced a case under Chapter 11 of the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Bankruptcy Code Bankruptcy Code may refer to:
Daniel H. Levy, Best Products' Chairman and Chief Executive Officer, said: "The decision to file was a difficult one. Best Products has been considering all its alternatives, including the consideration of a proposed offer of merger made by Ocean Reef Management, which was withdrawn. However, in the circumstances of contracting credit and the necessity to preserve the value of the assets and properties of Best Products, it was determined that the overall interests of of our customers, vendors, associates and stockholders required immediate action be taken so normal operations Generally and collectively, the broad functions that a combatant commander undertakes when assigned responsibility for a given geographic or functional area. Except as otherwise qualified in certain unified command plan paragraphs that relate to particular commands, "normal operations" of may resume as expeditiously ex·pe·di·tious adj. Acting or done with speed and efficiency. See Synonyms at fast1. ex as is possible." "As the case goes forward, Best Products will continue to evaluate and take actions that will serve the best interests of all parties," Levy said. "In the interim, Best Products will continue the process begun earlier this year of transforming its business from a retail catalog showroom to a more customer-friendly retail format. We believe this action will minimize the impact to our vendors and associates." Best Products also announced it has obtained a Chapter 11 debtor-in-possession credit facility from CIT n. 1. A citizen; an inhabitant of a city; a pert townsman; - used contemptuously. Which past endurance sting the tender cit. - Emerson. Group/Business Credit, Inc., subject to approval by the bankruptcy court, in the amount of $250 million with a sublimit sub·lim·it n. A limit or ceiling placed on a subdivision of a larger category, especially of nuclear weapons: negotiating sublimits on the number of land-based, intermediate-range missiles. of $100 million for the issuance of letters of credit. The debtor-in-possession facility has a term of 30 months and is unsecured. Levy said, "The commencement of the Chapter 11 was precipitated by Best Products' continuing sales decline and resulting deterioration of vendor support. These factors disrupted the transition to the new format, and the process of stabilizing the company became increasingly difficult. Without adequate and balanced inventories for the important holiday season, Best Products would not realize the benefits of the changes being implemented. The CIT debtor-in-possession credit facility will enable Best Products to restore merchandise shipments and allow it to take advantage of the Christmas retail season." Best Products, a specialty retailer offering category-dominant assortments of jewelry and home furnishings, operates 169 Best stores in 23 states. The company also operates 11 Best Jewelry stores and a nationwide mail-order service. CONTACT: Investor Relations Investor relations The process by which the corporation communicates with its investors. Nora Crouch (804) 261-2179 or Media Contact: Ross Richardson (804) 261-2157 |
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