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FABRI-CENTERS ANNOUNCES COST-CUTTING MEASURES, STOCK REPURCHASE AUTHORIZATION AND EXECUTIVE RESTRUCTURING

 FABRI-CENTERS ANNOUNCES COST-CUTTING MEASURES,
 STOCK REPURCHASE AUTHORIZATION AND EXECUTIVE RESTRUCTURING
 CLEVELAND, July 14 /PRNewswire/ -- Fabri-Centers of America, Inc., (NYSE: FCA) today announced that because of continuing soft sales and a much tougher retailing environment, the company as taken aggressive actions to improve its ability to compete effectively. These actions include staff reductions and across-the-board salary reductions at the administrative level to offset an expected lower gross profit margin resulting from intense price competition. The salary reductions in addition to staff reductions are being taken to retain as many employees as possible.
 Net sales for the five weeks that ended July 4, 1992, were $43.2 million, up 24.8 percent over the same period a year ago. Comparable- store sales were even with the prior year. Sales momentum in May and June remained under forecast in spite of aggressive promotional activity. Severance related charges, expected lower margins due to competitive pressure, sales shortfall to plan and higher fixed costs associated with an aggressive real estate expansion plan will cause the second quarter estimated loss to range between $.85 and $1.00 per share, compared with the prior year's loss of $.04 per share. The second quarter is traditionally the weakest period of the year when lower sales do fully cover fixed costs and one in which a loss is normally incurred. In the fiscal year that ends Jan. 31, 1993, earnings are now expected to be below last year's earnings of $1.90 per share.
 "These difficult cost-containment actions are the necessary response to a much more competitive business environment," stated Alan Rosskamm, Fabri-Centers' chief executive officer. From a longer-term perspective, the company's strategy to convert the remaining small stores (292 at the end of June) to superstores remains on schedule. During the current fiscal year, the company will open approximately 175 superstores and close approximately 120 smaller, less efficient units.
 The company also announced that Alan Rosskamm, 42, president and chief executive officer, will become chairman and chief executive officer; and James Monro, Jr., 42, executive vice president and chief operating officer, will be come president and chief operating officer; Martin Rosskamm, 77, chairman of the board, will become chairman emeritus. These moves are part of a broader reorganization designed to streamline operations.
 The company announced further that its board of directors has authorized the purchase of an additional 1,000,000 shares of its common stock. Shares purchased from time to time will be used to satisfy obligations under the company's employee benefit plans and for other corporate purposes. The additional share repurchase authorization which supplements the company's existing 1988 authorization means a total of 1,339,831 shares may be acquired.
 Fabri-Centers which had 9,371,569 shares outstanding on July 4, 1992 operates 678 fabric stores in 38 states, primarily under the name Jo-Ann Fabrics, and 29 Cargo Express housewares stores in Ohio and Michigan.
 -0- 7/14/92
 /CONTACT: Robert Norton or Alan Rosskamm, 216-656-2600, both of Fabri-Centers of America, Inc./
 (FCA) CO: Fabri-Centers of America, Inc. ST: Ohio IN: REA SU:


SM -- CL007 -- 8970 07/14/92 09:17 EDT
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Publication:PR Newswire
Date:Jul 14, 1992
Words:516
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