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FAY'S TO CLOSE NINE PHILADELPHIA PAPER CUTTER STORES

 LIVERPOOL, N.Y., April 14 /PRNewswire/ -- Fay's Incorporated (NYSE: FAY) today announced its intention to immediately close all nine of its Paper Cutter Stores operating in the Philadelphia metropolitan area. The stores affected are located in Chalfont, Pa., Chestnut Hill, Pa., Wayne, Pa., Norristown, Pa., Whitehall, Pa., Fairless Hills, Pa., Deptford, N.J., Turnersville, N.J. and on Roosevelt Blvd. in Philadelphia. Following the store closures, Fay's will continue to operate 25 Paper Cutter Stores, all of which are located in New York State.
 As a result of the store closings, Fay's anticipates a first-quarter charge to net earnings for future rental obligations, abandoned leasehold improvements and other expenses related to the closings amounting to approximately $3.3 million or $.16 per share, on an after tax basis.
 Henry A. Panasci, Jr., Fay's chairman and chief executive officer, stated, "Our decision to close the Philadelphia area Paper Cutter Stores came after a thorough review of the availability of suitable real estate and the costs being incurred in operating the small base of stores that existed in the market. This move will maximize Paper Cutter's potential by allowing us to concentrate our efforts on our better performing units and expansion of the chain in other markets. With the elimination of these stores, we expect The Paper Cutter will be profitable in fiscal 1994."
 In addition to the charge to net earnings relating to the store closings, Fay's will also incur a one-time, non-cash charge to its first-quarter net earnings of $4.7 million or $.23 per share resulting from the adoption of new accounting standards for post retirement benefits mandated by Financial Accounting Standards Board Statement No. 106.
 On March 9, Fay's reported that for the fiscal year ended January 30, 1993, net earnings increased 29.8 percent to a record $11.2 million or $.56 per share on sales of $902.6 million.
 Fay's principal business is the operation of 248 drug stores located in the states of New York, Pennsylvania, New Hampshire and Vermont. Fay's also operates 31 Wheels Discount Auto Supply Stores in upstate New York.
 -0- 4/14/93
 /CONTACT: Warren D. Wolfson, senior vice president and general counsel of Fay's Incorporated, 315-451-8000/
 (FAY)


CO: Fay's Incorporated ST: New York IN: REA SU:

AR -- CL009 -- 5576 04/14/93 09:44 EDT
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Publication:PR Newswire
Date:Apr 14, 1993
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