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LEEDMARK DECLARES BANKRUPTCY, FILES FOR PROTECTION UNDER CHAPTER 11 OF BANKRUPTCY CODE

 GLEN BURNIE, Md., Nov. 18 /PRNewswire/ -- The Leedmark store said today it has declared bankruptcy under provisions of Chapter 11 of the Bankruptcy Code.
 Next Tuesday, the U.S. Bankruptcy Court for the District of Maryland is scheduled to issue rulings on a series of motions that were filed by the store on Nov. 15. The motions seek approval for Leedmark to conduct a going out of business sale under the supervision of the court and to employ KMR Management to liquidate the store's assets.
 On Monday, the court gave preliminary approval for a motion by the store to use some of the proceeds from the sale of Leedmark's assets to pay for costs associated with the winding down of the store's operations. A final ruling is also expected Tuesday.
 Leedmark has sent letters to its 20 main creditors, telling them that the store's assets, including inventory and fixtures, have been appraised at $3 million-$5 million, while the store owes more than $11 million to its bank.
 Leedmark's declaration of bankruptcy was filed Monday with the U.S. Bankruptcy Court for the District of Maryland.
 Spokesman Edward Segal said Leedmark declared bankruptcy only after three of the store's creditors filed a petition earlier this month seeking to place the retailer into involuntary bankruptcy under Chapter 7.
 Segal said voluntary bankruptcy was necessary "in order to guarantee that we will be able to fairly and orderly liquidate and terminate our business operations, dispose of our other assets and pay creditors in order of priority as specified by the Bankruptcy Code.
 "This is a sad but necessary step we had to take to help ensure control of our operations during this difficult time," he said.
 On Nov. 1, Leedmark officials, citing declining non-food sales and very significant losses, said the store would close by Jan. 15.
 On Nov. 4, Leedmark officials said they would oppose efforts by creditors to place the store into involuntary bankruptcy. Segal said at the time that, "There is simply no need whatsoever for the court to appoint a trustee since the store's management, working in conjunction with the experts, is already doing everything that a trustee would do."
 -0- 11/18/93
 /CONTACT: Edward Segal of Edward Segal Communications, 202-333-7966, for Leedmark/


CO: Leedmark ST: Maryland IN: REA SU: BCY

KD-MH -- DC029 -- 6123 11/18/93 14:37 EST
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Publication:PR Newswire
Date:Nov 18, 1993
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