Printer Friendly

FOLAND'S BEGINS RESTRUCTURING PROCESS; PLAN INCLUDES CONTINUED OPERATION OF ALL SIX LOCATIONS

 FOLAND'S BEGINS RESTRUCTURING PROCESS;
 PLAN INCLUDES CONTINUED OPERATION OF ALL SIX LOCATIONS
 LIVONIA, Mich., Jan. 21 /PRNewswire/ -- Foland's, the Livonia-based retailer, intends to file for Chapter 11 Wednesday, Jan. 22, in order to restructure under court protection. This action is in response to a breakdown in negotiations between Foland's management and its creditors, which filed Chapter 7, involuntary liquidation, against the retailer today. The announcement was made by David Castlegrant, director of stores.
 "We plan to continue operating all six locations, expanding our strongest categories, namely fine jewelry, bridal registry, gift and tabletop," explained Castlegrant. "Weaker business segments will be eliminated through aggressive inventory liquidation promotions we will be conducting shortly. Importantly, we will be able to devote more of our inventory dollars to those key business areas in which Foland's enjoys a strong presence in the metropolitan Detroit market."
 The 19-year-old retail chain's restructuring plan is two-fold. First, the company will reduce operating expenses in an effort to be more efficient. Many of the headquarter positions will be combined and labor-intensive store support areas will be downsized. Additionally, Foland's will discontinue its annual catalogue book in an expense- cutting move. The other details have not as yet been finalized.
 "We intensified our sales promotion strategy in recent months to generate needed business, however a difficult holiday season throughout the entire retail industry severely hindered these efforts," said Castlegrant. "This plan of reorganization under court protection is designed to enable Foland's to go forward.
 "We apologize to our customers and employees for this unforeseen chain of events. This course of action was not anticipated, however we remain optimistic about the future of Foland's."
 Established in 1973, Foland's operates stores in Clinton Township, Dearborn, Livonia, Rochester, Southfield and Warren.
 -0- 1/21/92
 /CONTACT: David Castlegrant of Foland's, 313-427-2800/ CO: Foland's ST: Michigan IN: REA SU: RCN BCY


KK -- DE024 -- 2047 01/21/92 16:35 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jan 21, 1992
Words:316
Previous Article:IBM EXPANDS THE PERSONAL SYSTEM/2 FAMILY OF COMPUTERS WITH THE NEW MODEL 25 SX FOR K-12 (Product Announcement)
Next Article:IBM ANNOUNCES WRITING TO WRITE FORM II
Topics:


Related Articles
FOLAND'S STORES TO CLOSE TO TAKE PHYSICAL INVENTORY AT END OF BUSINESS TODAY
FUTURE OF FOLAND'S EXPECTED BY NEXT WEEK
FOLAND'S BEGINS RESTRUCTURING PROCESS; PLAN INCLUDES CONTINUED OPERATION OF ALL SIX LOCATIONS
BANKRUPTCY COURT ORDERS FOLAND'S TO LIQUIDATE ENTIRE INVENTORY; DETROIT-AREA RETAILER TO HOLD GOING-OUT-OF BUSINESS SALE
Geological Society of America Selects Sara Foland As New Executive Director/CEO.
BURBANK HIGH SLAYER CONVICTED; JURY SAYS TEEN SANE IN UNPROVOKED STABBING OF STUDENT.
Village Voice Media Names Susan Meisel Vice President, General Counsel and Lynne Foland Vice President, Human Resources.
United Airlines Names Jeff Foland as Vice President-North America Sales.

Terms of use | Copyright © 2018 Farlex, Inc. | Feedback | For webmasters