Printer Friendly

HEILIG-MEYERS ACQUIRES CERTAIN ASSETS OF MCMAHAN'S FURNITURE

 RICHMOND, Va., Jan. 5 /PRNewswire/ -- Heilig-Meyers Company (NYSE: HMY), the Richmond-based home furnishings retailer, today announced that it had acquired certain assets relating to 92 stores of McMahan's Furniture Co. of Carlsbad, Calif. Sixty-five of these stores are in California, 12 in Arizona, seven in New Mexico, four in Texas, three in Nevada and one in Colorado. The purchase price, net of accounts receivable and real estate, was approximately $55 million. Accounts receivable of approximately $100 million were securitized and purchased by an unaffiliated party. Heilig-Meyers will act as servicer for these accounts. It is expected that the real estate associated with 70 stores owned by McMahan's entities will be purchased by an unaffiliated entity for approximately $57 million and leased to Heilig- Meyers. Heilig-Meyers has entered into an interim lease for these stores pending the closing of this real estate transaction, scheduled for later in January 1994, and has assumed the leases on the remaining store properties. McMahan's also operates banking and specialty insurance entities, which it will retain.
 Troy A. Peery Jr., president and chief operating officer, commented that management is pleased to have acquired these well-run, profitable retail furniture operations. He added that McMahan's operating methodologies and customer profile are very similar to those of Heilig- Meyers.
 William C. DeRusha, chairman and chief executive officer, commented that this acquisition will help create a nationwide presence for Heilig- Meyers by quickly establishing a significant market presence within this operating region. He added that this acquisition further increases the company's market share within the fragmented home furnishings industry.
 -0- 1/5/94
 /CONTACT: Roy Goodman and Lee Fletcher of Heilig-Meyers, 804-359-9171/
 (HMY)


CO: Heilig-Meyers Company; McMahan's Furniture Company ST: Virginia, California IN: REA SU: TNM

KW-DC -- DC007 -- 9285 01/05/94 10:57 EST
COPYRIGHT 1994 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1994 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jan 5, 1994
Words:295
Previous Article:GHS ANNOUNCES GAMMA KNIFE APPROVAL GRANTED
Next Article:DYNCORP WINS $97 MILLION NASA CONTRACT
Topics:

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters