JG INDUSTRIES, INC. ANNOUNCES INCREASES NET WORTH
JG INDUSTRIES, INC. ANNOUNCES INCREASES NET WORTH CHICAGO, Oct. 15 /PRNewswire/ -- JG Industries, Inc.
(NASDAQ-NMS: JGIN) ("JG") announced today that it has increased its net worth by approximately $3.2 million. The company purchased a portion of its Series A Redeemable Preferred Stock and a portion of the Series X Redeemable Preferred Stock of one of its subsidiaries for $5 million. The Preferred Stock had a combined face value of approximately $8.2 million, so JG's net worth increased accordingly upon completion of the transaction. The Jupiter Corp., a 46.5 percent shareholder of JG, purchased the balance of the Series A and X Redeemable Preferred Stock with a face value of approximately $4.9 million.
Financing for JG's purchase of this Redeemable Preferred Stock at a discount was provided by LaSalle National Bank pursuant to a five-year term loan. The bank's continuing support is an indication of the stability of JG's underlying retail operations. JG also announced that it is consolidating its corporate offices effective Nov. 1, 1992, with those of its wholly owned subsidiary, Goldblatt's Department Stores, Inc. The move is being made as part of a planned reduction in overhead. These two actions will serve to strengthen JG's financial position both immediately and in the future. JG Industries, Inc. is a Chicago-based retailing concern that operates, through its various subsidiaries, 13 Goldblatt's Department Stores in Illinois and Indiana, 11 Huffman Koos furniture stores in New Jersey and New York, and 114 specialty retail shoe stores nationwide. -0- 10/15/92 /CONTACT: Tom Pabst of JG Industries, 312-787-0022/ (JGIN) CO: JG Industries, Inc. ST: Illinois IN: REA SU:
SH -- NY093 -- 0590 10/15/92 16:01 EDT
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|Date:||Oct 15, 1992|
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