CALDOR FILES FOR VOLUNTARY CHAPTER 11; Arranges $250 Million DIP Commitment from Chemical Bank; "Our Business Today is Fundamentally Sound and We Will Continue to Implement Our Strategy," says Don Clarke, Chairman.NORWALK, CONNECTICUT--(BUSINESS WIRE)--September 18, 1995--The Caldor Corporation (NYSE NYSE See: New York Stock Exchange - CLD CLD Called CLD Cloud CLD Cleared CLD Chronic Lung Disease CLD Council for Learning Disabilities CLD Cooled CLD Chronic Liver Disease CLD Clear Direction Flag CLD Certified LabVIEW Developer CLD Causal Loop Diagram ) today announced that as a result of the recent downturn in retail sales and a decline in trade credit support, it has filed a voluntary petition to seek protection under Chapter 11 of the Federal Bankruptcy Code Bankruptcy Code may refer to:
The filing, which was made in the U.S. Bankruptcy Court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. for the Southern District of New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , will enable the Company to conduct business as usual while it implements a plan to reorganize and shore up support among its vendors and other creditors. Caldor expects to use all proceeds from its current inventory and, in addition, has also obtained a $250 million debtor-in-possession financing Debtor-in-possession financing New debt obtained by a firm during the Chapter 11 bankruptcy process, Federal Bankruptcy Rule 4001 (c)(1). This financing is unique because it is secured, that is, it has priority over existing debt, equity and other claims. commitment from Chemical Bank. Subject to court approval, these funds will enable the Company to meet future inventory needs and to fulfill obligations associated with operating its business, including the prompt payment of new vendor invoices. Employees will receive salaries in the normal manner and benefits programs will continue. All 166 Caldor discount department stores This is a list of department stores. In the case of department store groups the location of the flagship store is given. This list does not include large specialist stores, which sometimes resemble department stores. are open today and conducting business as usual. Don Clarke Donald Barry Clarke (November 10, 1933–December 29, 2002) was a New Zealand rugby union player who played 89 times (31 of these were test matches) as an All Black from 1956 until 1964. , Chairman, said, "Caldor has a long history of successful retailing and our organization has accomplished a great deal in the past few years. Our business today is fundamentally sound and we will continue to implement our strategy. "Nevertheless, over the short term we have been confronted with a very difficult retail environment, characterized by fierce competition, weak sales, and exacerbated by other discount retailer bankruptcies. This has substantially affected business conditions. Even though Caldor for the last several years has achieved solid financial performance and was in compliance with its bank covenants, a portion of the vendor and factor community reacted to this difficult environment, and to media reports and rumors, by reducing its support. Although Caldor undertook wide-ranging efforts to address these concerns, we were unable to consummate an acceptable transaction within the time frame that would allow us to avoid jeopardizing the all-important fourth quarter. Accordingly, we had no recourse but to make this most difficult decision and seek protection under Chapter 11. "By seeking Chapter 11 protection and arranging for DIP financing, we will be able to obtain and pay for a full inventory of attractive goods and preserve our strong consumer franchise. We look forward to emerging from Chapter 11 as soon as possible," he concluded. As of July 29, 1995, the Company had consolidated assets (unaudited) of approximately $1.2 billion, and consolidated liabilities (unaudited) of approximately $883 million. The Caldor Corporation is the fourth largest discount department store chain in the U.S.,with annual sales of approximately $2.8 billion. It operates 166 stores in ten East Coast states. With a strong consumer franchise in high-density urban/suburban markets, Caldor offers a diverse merchandise selection, including both softline and hardline products. CONTACT: Media: Wendi Kopsick/Jim Fingeroth Kekst & Company: (212) 593-2655 or Investor Relations Investor relations The process by which the corporation communicates with its investors. : David D. Peterson: (203) 849-2334 |
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