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JAMESWAY CORP. TO REORGANIZE UNDER CHAPTER 11; OPERATIONS WILL CONTINUE AS USUAL

 SECAUCUS, N.J., July 19 /PRNewswire/ -- Jamesway Corporation (NYSE: JMY), today voluntarily filed for protection under Chapter 11 of the United States Bankruptcy Code.
 At the same time, the company announced that it has obtained a $75 million line of credit from the CIT Group/Business Credit that will permit it to operate as usual during the reorganization. The company listed assets of $336,139,000 and liabilities of $277,016,000.
 "After an extensive review of the operational and financial issues facing Jamesway, including its current and future cash needs, it was concluded that prompt and decisive action must be taken in order to preserve the company's assets and restore customer and vendor confidence," said Howard R. Curd, chairman of the board of Jamesway.
 The company emphasized that all suppliers will be promptly paid for products and services provided after the filing.
 Mr. Curd added, "Chapter 11 affords Jamesway time to restructure its operations. Under Chapter 11, management will have the necessary time to be able to reposition and to redirect Jamesway so that the best interest of the company's creditors, suppliers, associates and shareholders are protected. Daily operations will continue as usual. Stores will sell the same merchandise. Hours of operation will be the same as before the filing," he stated.
 According to Joseph Ettore, president, chief executive officer and chief operating officer, "As far as the company's customers are concerned, we expect to be able to provide them with a complete selection of goods and services. We will be contacting each of our key vendors immediately to seek their cooperation."
 Mr. Curd, 54, a noted turnaround expert, was named chairman on July 7 following the resignation of Arlie Lazarus. Mr. Curd has served on the company's board since 1983. Succeeding Mr. Lazarus as CEO was Mr. Ettore, 54, who retained his responsibilities as president and chief operating officer. Mr. Curd is leading the company's reorganization while Mr. Ettore is overseeing the day-to-day operations.
 Mr. Ettore said that the company, which has been buffeted by the continued nationwide recession, and by adverse winter weather conditions in the northeast, plans to continue its program of updating and modernizing stores and enhancing its product mix and selection. He said that every store is being reviewed to ensure its maximum competitiveness and profitability. "The people of Jamesway have a strong competitive spirit and the will to win," said Mr. Ettore. "They recognize in this tough competitive environment that the battle is going to be won in the stores and that our customers must come first. It is this strong competitive spirit which we believe will ultimately make the difference and return this chain to the position of prominence which it deserves."
 Jamesway Corp. operates 108 discount department stores in seven mid- Atlantic states.
 -0- 7/19/93
 /CONTACT: David Sternstein or Joseph Kist, of Howard J. Rubenstein Associates, Inc., 212-489-6900, for Jamesway Corporation/
 (JMY)


CO: Jamesway Corporation ST: New Jersey IN: REA SU: BCY

LG-OS -- NY019 -- 2941 07/19/93 09:46 EDT
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Publication:PR Newswire
Date:Jul 19, 1993
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