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GANTOS FILES FOR CHAPTER 11 REORGANIZATION

 GRAND RAPIDS, Mich., Nov. 12 /PRNewswire/ -- Gantos, Inc. (NASDAQ: GTOS) announced today that it and its wholly owned subsidiary, Gantos Stores, Inc., have today filed petitions in the U.S. Bankruptcy Court for the Western District of Michigan seeking reorganization pursuant to Chapter 11 of the Federal Bankruptcy Code. Gantos is a leading retailer of quality women's wear and accessories. The company currently operates 159 stores in 25 states.
 Company Chairman L. Douglas Gantos stated, "The restructuring we are now undertaking is a positive step designed to enable us to focus on our core markets and to close certain stores that have not performed as well as we would have liked. After exploring all options, we feel that the best and fastest way to return the company to profitability is to realign our operations by downsizing the chain to focus on a nucleus of approximately 105 profitable stores, which has the full support of our banks. Chapter 11 affords us the opportunity to accomplish this goal, without disrupting the flow of merchandise to our stores and our ability to continue to provide excellent service to our customers.
 "The operating performance and high customer satisfaction levels in our remaining stores are expected to improve because these stores will receive all our efforts and resources," added Mr. Gantos.
 Gantos enters Chapter 11 with substantial liquidity. The company has over $9 million in cash on hand. In addition, Gantos has obtained a binding commitment from its banks for a $15 million debtor-in-possession loan, which has been presented to the Bankruptcy Court for approval. "Cash on hand plus the debtor-in-possession loan from our banks gives us over $24 million of working capital at the outset of the bankruptcy case. We expect this working capital to be more than sufficient to ensure that our operations and our ability to serve our customers will continue smoothly and without disruption," said Mr. Gantos.
 -0- 11/12/93
 /CONTACT: Wayne J. Hutnick, vice president/CFO of Gantos, 616-940-8750/
 (GTOS)


CO: Gantos, Inc. ST: Michigan IN: REA SU: BCY

SB -- DE028 -- 3802 11/12/93 15:30 EST
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Publication:PR Newswire
Date:Nov 12, 1993
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