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JG INDUSTRIES, INC. FILES UNDER CHAPTER 11

 CHICAGO, Nov. 25 ~PRNewswire~ -- JG Industries, Inc. (NASDAQ: JGIN) announced today that Milgram Kagan Corp. (M-K), an indirect majority owned subsidiary, filed a voluntary petition for reorganization under Chapter 11 of the United States Bankruptcy Code. Continuing losses, the poor economic climate and an inability to address its current obligations necessitated this step.
 As a result of this filing, M-K will close a significant number of stores and expenses will be reduced dramatically in an effort to return quickly to the core of concept shoe stores which have been consistently profitable. A charge to earnings relating to the bankruptcy in JG's third quarter could approximate $10 million.
 Debtor in Possession financing has been arranged, providing M-K working capital to fund its ongoing operations. In connection with the M-K bankruptcy, JG's main financial institution has agreed to waive cross default provisions contained in its loan agreements with JG. Such waiver should allow JG's other divisions to continue with no impact on their operations.
 JG Industries, Inc. is a Chicago-based retailing concern that operates, through its various subsidiaries, 13 Goldblatt's Department Stores in Illinois and Indiana, 11 Huffman Koos furniture stores in New Jersey and New York, and 114 specialty retail shoe stores nationwide.
 -0- 11~25~92
 ~CONTACT: Thomas Pabst of JG Industries, 312-787-0022~
 (JGIN)


CO: JG Industries, Inc. ST: Illinois IN: REA SU: BCY

PS -- NY019 -- 1469 11~25~92 11:04 EST
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Publication:PR Newswire
Date:Nov 25, 1992
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