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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., Feb. 10 /PRNewswire/ -- Foland's, the Livonia-based retailer, filed for Chapter 11 on Friday, Feb. 7, in order to restructure under court protection. This action is in response to the Chapter 7 petition filed by Foland's Creditors Committee in late January. The announcement was made by David Castlegrant, director of stores.
 "Protection under Chapter 11 will allow Foland's to continue operating all six locations during one of our most important seasons for bridal registry," explained Castlegrant. "Importantly, our stores remain open for business. Although the peak wedding season does not get under way until May and June, couples begin registration now. We must continue to offer a wide selection of merchandise to maintain our marketing edge. Studies have verified that Foland's enjoys a strong presence in fine jewelry and gift-related items, including china, crystal and flatware.
 "Continued operation as a debtor-in-possession enables Foland's to replenish our inventory, release orders and keep our employees working as opposed to closing our doors. We are committed to seeing that Foland's remains in business."
 Following petition by the Creditors Committee on Jan. 22, Foland's had 20 days to respond with a Chapter 11 protection measure. Court protection will allow Foland's to restructure its debt without interference from creditors.
 "We worked diligently to achieve an out-of-court workout with our creditors," said Castlegrant, "but, unfortunately, the lines of communication broke down and we have taken the action necessary to preserve the company. However, we do remain hopeful that an equitable agreement can be reached between the company and its creditors. We are making every effort to facilitate this process."
 Established in 1973, Foland's operates stores in Clinton Township, Dearborn, Livonia, Rochester, Southfield and Warren.
 -0- 2/10/92
 /CONTACT: David Castlegrant of Foland's, 313-427-2800/ CO: Foland's ST: Michigan IN: REA SU: RCN


SB -- DE011 -- 8209 02/10/92 10:35 EST
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Publication:PR Newswire
Date:Feb 10, 1992
Words:318
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