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CARTER HAWLEY HALE ANNOUNCES ADDITIONAL MODIFICATIONS TO WORKING CAPITAL FACILITY

 LOS ANGELES, Nov. 8 /PRNewswire/ -- Carter Hawley Hale Stores, Inc. (NYSE: CHH) announced today an additional modification of its working capital loan agreement with GE Capital Corporation. Pursuant to this modification, earnings and cash flow covenants have been eliminated until the end of February 1994 and the clean-up period from January 1, 1994 to February 15, 1994 has been eliminated. Under the new agreement, borrowings under the working capital line will be capped at $60.0 million in January and $75.0 million in February.
 "The last modification of our working capital facility apparently bothered some of our vendors," said David L. Dworkin, president and chief executive officer. "Weak October sales and natural disasters in Southern California compounded that worry. The basic facts are unchanged; CHH continues to pursue its new strategic direction, with sweeping changes taking place in our merchandising alignments, management structure, and store environments. While we do not know as yet what the fourth quarter will look like, substantial severance costs and strategic markdowns for discontinued product lines guarantee a disappointing financial result for 1993. On a brighter side, we are beginning to see positive results from our new marketing and merchandising direction and are confident that CHH is fundamentally improving. This new amendment to our credit agreement allows us to continue our program regardless of fourth quarter profits."
 "The management of CHH has our complete confidence and is doing a superb job," said Samuel Zell, chairman of the board. "They deserve capital support, and they've got it." Mr. Zell added, "Additional financial planning steps for 1994 are underway. It's too soon to discuss them since they will be shaped, in part, by how we perform in the fourth quarter. We believe that CHH's shareholders, associates, and vendors should feel confident about the direction of the company."
 Carter Hawley Hale Stores, Inc. (NYSE: CHH) is one of the leading operators of full-line department stores in the Western
United States with annual sales in excess of $2.1 billion. It operates 83 department stores under the names of The Broadway, Emporium and Weinstocks.
 -0- 11/8/93
 /CONTACT: Bill Dombrowski, Vice President Public Affairs, 213-227-3884/
 (CHH)


CO: Carter Hawley Hale, Inc. ST: California IN: REA SU:

DH -- NY017 -- 1577 11/08/93 08:34 EST
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Publication:PR Newswire
Date:Nov 8, 1993
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