Cosmetic Center Closes On $50 Million Credit Facility.- DIP Financing Arranged by BankBoston Retail Finance and Congress Financial - COLUMBIA, Md.--(BUSINESS WIRE)--May 27, 1999-- The Cosmetic Center, Inc. today announced that it has received final 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 for, and closed on, a $50 million debtor-in-possession (DIP) financing facility from BankBoston Retail Finance Inc. and Congress Financial Corporation. This financing is expected to provide funding for all post-petition trade and employee obligations, as well as the Company's ongoing operating needs during the restructuring process. "We are pleased to have reached this important milestone in the reorganization process," said Kevin Regan, Chief Executive Officer of Cosmetic Center. "Now that we have closed on our DIP facility, we will be able to move forward with our strategic plans to revitalize re·vi·tal·ize tr.v. re·vi·tal·ized, re·vi·tal·iz·ing, re·vi·tal·iz·es To impart new life or vigor to: plans to revitalize inner-city neighborhoods; tried to revitalize a flagging economy. the Company." Mr. Regan continued, "BankBoston Retail Finance and Congress Financial demonstrated excellent responsiveness in structuring this new facility. Their ability to act quickly and professionally, combined with their understanding of our business objectives, has been extremely helpful." Based in Columbia, Maryland Columbia is a census-designated place and planned community in Howard County, Maryland, United States. It is a suburb of Baltimore, and, to a lesser degree, Washington, DC. It began with the idea that a city could enhance its residents' quality of life. , Cosmetic Center is a specialty retailer of name brand and private label fragrances, cosmetics, professional hair-care, health and beauty products. Following the previously announced closing of 116 underperforming stores and corporate downsizing (1) Converting mainframe and mini-based systems to client/server LANs. (2) To reduce equipment and associated costs by switching to a less-expensive system. (jargon) downsizing , the Company will operate 31 Cosmetic Center(c) stores primarily in Maryland and Virginia and 93 Prestige Fragrances & Cosmetics outlet stores An outlet store or factory outlet is a retail store in which manufacturers sell their stock directly to the public through their own branded stores. The stores can be can be brick and mortar or online. in 27 states. Certain statements contained in this press release are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995, such as statements referring to future business development activities, and are thus prospective. Such forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. are subject to risks, uncertainties and other factors which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to, economic conditions, competition and other uncertainties detailed from time to time in the Company's Securities and Exchange Commission filings. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion