Caldor to Wind Down Business.NORWALK, Conn.--(BUSINESS WIRE)--January 22, 1999--The Caldor Corporation today announced that its Board of Directors has determined it will proceed with an orderly wind-down of the Company's business, subject to 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. approval. Caldor and its Board, over an extended period of time, explored a wide range of alternatives for maximizing value for the Company's constituencies, including most recently through the Court-ordered mediation mediation, in law, type of intervention in which the disputing parties accept the offer of a third party to recommend a solution for their controversy. Mediation has long been a part of international law, frequently involving the use of an international commission, process. While Caldor made progress, ultimately, its performance did not enable it to overcome the vigorous opposition from certain of its pre-petition secured creditors One who holds some special monetary assurance of payment of a debt owed to him or her, such as a mortgage, collateral, or lien. , which made impossible the development of a viable and confirmable plan of reorganization. Thus, the Company was left with no alternative but an orderly wind-down and liquidation The collection of assets belonging to a debtor to be applied to the discharge of his or her outstanding debts. A type of proceeding pursuant to federal Bankruptcy of its business, including the closure of all 145 of its stores. The Company plans to dispose of To determine the fate of; to exercise the power of control over; to fix the condition, application, employment, etc. of; to direct or assign for a use. See also: Dispose its inventory through Going-Out-Of-Business sales Noun 1. going-out-of-business sale - a sale of all the tangible assets of a business that is about to close; "during the Great Depression going-out-of-business sales were very common" which are expected to begin within several weeks and to be completed by mid-May. The Company expects to retain many of its store-based Associates through this process. In addition, the Company will seek a Court order to proceed with the sale of its real estate. The Company is continuing to work with BankBoston and its bank group. Warren D. Feldberg, Chairman and Chief Executive officer, said, "It is with great sadness and disappointment that we announce the decision to close down Caldor's business. Our 20,000 Associates have worked extremely hard in an effort to reposition and strengthen the Company. We accomplished a great deal over the course of the last several years. However, given the nature of our capital structure and the shortfall to our performance goals, the Board had no alternative but to conclude that this was the most appropriate course of action under these circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or . I'd like to thank all of our Associates for their hard work and commitment, and, as well, our vendors and lending group, led by BankBoston Retail Finance, for their strong support during this difficult process." The Caldor Corporation, with annual sales of approximately $2.5 billion and approximately 20,000 Associates, currently operates 145 stores in nine East Coast states. The Company filed for Chapter 11 on September 18, 1995. |
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