County Seat Stores Files Plan and Disclosure Statement.DALLAS--(BUSINESS WIRE)--Aug. 1, 1997--County Seat Stores, Inc. announced today that it has recently filed a plan of reorganization and disclosure statement in its chapter 11 bankruptcy case which presently pends in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. 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 District of Delaware. The distribution concepts embodied em·bod·y tr.v. em·bod·ied, em·bod·y·ing, em·bod·ies 1. To give a bodily form to; incarnate. 2. To represent in bodily or material form: in the plan are supported by County Seat's creditors' committee creditors' committee A group of lenders who seek to protect their interests in connection with a borrower that experiences financial difficulties. . The Bankruptcy Court has scheduled August 22, 1997 as the date for the hearing to consider the adequacy of the disclosure statement. If the disclosure statement is approved, it is anticipated that a hearing on confirmation of the plan will be held on October 1, 1997. The basic structure of the plan is that holders of general unsecured claims against County Seat Stores will receive 100% of the New Common Stock of Reorganized re·or·gan·ize v. re·or·gan·ized, re·or·gan·iz·ing, re·or·gan·iz·es v.tr. To organize again or anew. v.intr. To undergo or effect changes in organization. County Seat Stores. Certain holders of preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. at the County Seat Stores' level will receive warrants to purchase up to 15% of Reorganized County Seat Stores at strike prices to be determined based upon the total value of distributions to be received by holders of general unsecured claims. The plan contemplates that Reorganized County Seat Stores will enter into a new credit facility and will issue new senior notes for cash. Monies from these transactions will be used by Reorganized County Seat Stores to make certain payments required by the plan and for general working capital purposes in respect of its post-confirmation operations. Since its bankruptcy filing, County Seat has, under the direction of Sam Forman, its new President and Chief Executive Officer, redirected its merchandising merchandising Element of marketing concerned especially with the sale of goods and services to customers. One aspect of merchandising is advertising, which aims to capture the interest of the segment of the population most likely to buy the product. , buying and operational efforts. In particular, County Seat has implemented a strategy emphasizing value-oriented private label casual apparel which yields significantly higher profit margins than brand name merchandise. In addition, County Seat has used the protections. available under the Bankruptcy Code Bankruptcy Code may refer to:
Regarding County Seat Stores' progress in its reorganization case, Mr. Forman stated, "Filing of the plan and disclosure statement was an important step forward in restoring County Seat to a position of health and vitality. We look forward to our prompt emergence from bankruptcy. Because of our stream-lined operations and refocused merchandising plan, County Seat can compete successfully in the specialty retail business." County Seat Stores is one of the nation's largest casual wear retailers with over 450 stores in 43 states. CONTACT: Matthew J. Knopf 612/829-2124 |
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