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PETER J. SCHMITT CO. FILES FOR CHAPTER 11 BANKRUPTCY PROTECTION

 PETER J. SCHMITT CO. FILES FOR CHAPTER 11 BANKRUPTCY PROTECTION
 BUFFALO, MAY 29 /PRNewswire/ -- "The extended deep recession, combined with a fierce competitive environment in the grocery industry, has made it increasingly difficult for Peter J. Schmitt Co., Inc. to compete in its markets. To ensure that PJS will have the time to address the situation constructively, the board and management of PJS have determined that seeking reorganization relief under Chapter 11 of the bankruptcy code is the only course of action open to it.
 Accordingly, a petition for such relief was filed today in Wilmington, Delaware, for Peter J. Schmitt Co., the holding company, and stores 100 percent owned by PJS," said D. Clark Ogle, president and chief executive officer of PJS.
 "Operating under the protection of Chapter 11, PJS expects to be able to pay all of its vendors for goods delivered going forward so that our franchisees, partners and customers can be assured that PJS will be able to meet all of their inventory needs without interruption," Ogle said. "In this regard, we filed in court today a motion seeking approval of cash collateral financing. We will continue to supply all management and market support services, and all of the supermarkets we serve will be fully competitive in terms of goods and the merchandising environment. All of our stores, including those 100 percent owned by the company, are open today and will continue with the normal course of their operations.
 "With the relief provided, PJS will be able to concentrate resources on enhancing the efficiency and effectiveness of its operations. We have already reduced our expense base substantially as a result of work force reductions over the past two years and the closing down yesterday of our Tri-State division which was generating mounting losses. Going forward, PJS has many strengths on which to build a solid plan of reorganization. We are a market leader in our targeted areas in upstate New York and adjacent localities. We have a history of profitable operation in this region and we now have in place new managerial leadership to take the company forward.
 "With the support of our creditors and customers, we are confident that we will be able to rebuild PJS into a strong, viable competitor. The continued hard work and dedication of the 7,000 employees of PJS and its franchisees is indispensable to our recovery and we appreciate the efforts of everyone in the organization to make this process as smooth as possible," Ogle said.
 Peter J. Schmitt Co., Inc. was founded in 1927 in Buffalo, New York. The company's Northeast division serves franchisees and independent food retailers in Western and Central New York, and Northwestern Pennsylvania.
 -0- 5/29/92
 /CONTACT: Fredric J. Spar of Kekst and Company, 212-593-2655, for Peter J. Schmitt Co./ CO: Peter J. Schmitt Co. Inc. ST: New York IN: FOD SU: BCY


10:07 -- NY016 -- 5110 05/29/92 10:19 EDT
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Date:May 29, 1992
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