Crown Books to Scale Down, Prepare for Future.LANDOVER, Md.--(BUSINESS WIRE)--Aug. 3, 1998--As part of its efforts to stabilize the company and continue offering the lowest discount bookstore prices available, Crown Books Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CRWN CRWN Composite Reconfigurable Wireless Network ) announced today a reorganization plan A scheme authorized by federal law and promulgated by the president whereby he or she alters the structure of federal agencies to promote government efficiency and economy through a transfer, consolidation, coordination, authorization, or abolition of functions. that includes closing 79 of its 174 stores. Crown Books, which filed for Chapter 11 protection on July 14 in 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. in Delaware, plans to close all of its stores in Philadelphia, Seattle and Texas. Crown will retain a strong presence in the Washington, D.C., metropolitan area, Chicago, San Francisco, Los Angeles and San Diego. "We regret closing any store," said Steve Pate, Vice President of Operations for Crown Books, "and we particularly regret having to leave our customers in these great markets. But we must scale down to what is profitable at the moment. This restructuring will give us a stable foundation, and then we will look to start growing again. We hope to return to these markets soon." An encouraging sign for the futureof Crown Books is the track record of its new management, according to Paragon Capital of Needham, Mass., which helped provide $40 million in debtor in possession financing debtor in possession financing Financing arranged during the time a company is in Chapter 11 bankruptcy. to Crown last month. "As Crown's new president, Anna Currence brings demonstrated turnaround success and unwavering commitment to the task," said Andrew Moser, Paragon President and COO. "In a matter of months, she has already created a new store design and layout." ty of its stores are located in suburban strip Steve Pate, 301/226-1200 KEYW URL URL in full Uniform Resource Locator Address of a resource on the Internet. The resource can be any type of file stored on a server, such as a Web page, a text file, a graphics file, or an application program. : http://www.businesswire.com |
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