The Hastings Group, Inc. Files Voluntary Chapter 11 Petition.

Inc. today announced that, due to the sustained downturn in the men's tailored clothing business, it has filed a voluntary petition for protection under chapter 11 of the Federal Bankruptcy Code. The filing, which was made in the U.S. Bankruptcy Court for the District of Delaware in Wilmington, will enable Hastings to maximize the value of the company for its creditors.

Based in Chicago, The Hastings Group, Inc. owns and operates a chain of 50 retail stores in 19 states which sell an upscale line of men's and women's tailored clothing and sportswear. The company was recently acquired by CHJ Acquisition Co., a private investor group.

Hastings intends to use the chapter 11 process to significantly pare down its operations through substantial cost-cutting measures, including staff reductions at the corporate and store levels and closures of some store locations. In addition, the company may sell a small core of profitable locations.

"As a result of the extremely difficult conditions in the retail industry nationwide, particularly in the men's tailored clothing business, we have concluded that a voluntary chapter 11 filing is in the best interest of the company and its creditors," said Michael Zaccaro, Chairman and Chief Executive Officer of The Hastings Group. The Hastings Group, Inc. acquired its stores from HSSI, Incorporated in August 1994. At the time of the acquisition, HSSI was itself involved in chapter 11 proceedings pending in the U.S. Bankruptcy Court for the Northern District of Illinois.

"When Hastings acquired the stores last year, we recognized that a turnaround would be a difficult task inasmuch as the business had suffered several years of contraction and a serious erosion of its customer base," Mr. Zaccaro said. "Nonetheless, we were confident that with new management, a fresh infusion of capital, and 18 months to two years of hard work, the business could be revitalized either on a stand-alone basis or in combination with another business.

"Unfortunately, the loss of customer support proved to be greater than anticipated and the protracted recession in the apparel industry prevented us from rebuilding our customer base to viable levels."

CONTACT: Michael Freitag

Adam Weiner

Kekst and Company

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