Bradlees Emerges From Chapter 11 Protection With $270 Million Financing Facility.

BRAINTREE, Mass.--(BUSINESS WIRE)--February 3, 1999--Bradlees, Inc. today announced that it has emerged from Chapter 11 bankruptcy protection. This announcement follows the January 27, 1999 action of the Bankruptcy Court of the Southern District of New York which, with the support of all of Bradlees' creditor constituencies, confirmed the company's Plan of Reorganization (the "Plan").

Bradlees also announced that it has obtained a three-year, $270 million post-emergence financing facility from of BankBoston, N.A., through its subsidiary BankBoston Retail Finance, Inc., as Agent and Issuing Bank, under which the company will be allowed to borrow for general corporate purposes, working capital and inventory purchases.

In addition, Bradlees common stock will trade on the National Association of Securities Dealers Automated Quotation (NASDAQ) system under the symbol "BRAD".

Peter Thorner, Bradlees' Chairman and Chief Executive Officer, said, "The approval of our Plan and the attainment of $270 million in post-emergence financing will allow us to embark on this new year with a fresh and energetic commitment to increasing our profitability and service levels. I appreciate the hard work and dedication of all of Bradlees employees, as well as the continued support from our vendor community, as we rebuild Bradlees into the family-oriented, discount department store of choice in the Northeast."

Ward K. Mooney, President of BankBoston Retail Finance, said, "We are delighted to play a significant role in the financial restructuring of Bradlees and to assist in the preservation of this leading New England retailer."

Court approval of the Plan successfully culminates a three-and-a-half-year reorganization process at Bradlees that was initiated once it filed for Chapter 11 Bankruptcy Court protection on June 23, 1995. Since then, Bradlees has seen an improvement in its business by reducing expenses, improving merchandise assortments and refocusing on customer service.

The Plan approved by the Bankruptcy Court provides for approximately $165 million in distributions to creditors. These distributions include $16 million of administrative claim payments, $7 million in tax and cure notes, $3 million in other distributions, $40 million in "new" notes (primarily payable to the company's pre-Chapter 11 bank group), $14 million in cash, and the issuance of new common stock with an estimated value of $85 million.

Bradlees, with 103 stores in seven states along the Northeast corridor, is one of the nation's largest regional discount department store chains with total annual sales of $1.4 billion.

Note to Editors: Today's news release, along ith other news about Bradlees, is available on the Internet at http://www.bradlees.com.