JG INDUSTRIES ANNOUNCES SALE OF SHOE STORES OF MILGRAM KAGAN CORP.
CHICAGO, March 29 /PRNewswire/ -- JG Industries, Inc. (NASDAQ: JGIN) announced today that the remaining 38 shoe stores of Milgram Kagan Corp., a majority owned subsidiary of JG, have been sold to Brown Group, Inc., manufacturers and owners of the Naturalizer brand. Milgram Kagan, which has been operating in Chapter 11 since Nov. 24, 1992, was unable to reach a satisfactory agreement with Brown regarding the continued operation of the Naturalizer stores and agreed to sell the stores to Brown. Milgram Kagan's final plan of reorganization is expected to be confirmed and executed later this spring, with all remaining assets being liquidated and distributed to creditors accordingly. JG has no financial obligations pursuant to the plan and will now focus all efforts on its two profitable divisions, Goldblatt's Department Stores, Inc. and Huffman Koos Inc. Because JG is not required to fund any of Milgram Kagan's obligations upon completion of the Chapter 11 case, its third quarter financial statements have been restated to record JG's investment in this subsidiary at zero. The previously filed consolidated third quarter financial statements of JG improperly reflected reserves for all losses; recorded in connection with the bankruptcy by Milgram Kagan, reducing its investment below zero. The excess reserves have now been eliminated, and pursuant to a Form 8 filed with the SEC, JG's third quarter loss was reduced to $7,098,000 or $1.25 per share, from $9,532,000 or $1.67 per share. JG Industries, Inc. anticipates that an increase in fourth quarter net income in comparison to the prior year will be reported in late April. JG Industries, Inc. is a Chicago based retail holding company that operates, through its various subsidiaries, 14 Goldblatt's department stores in the Chicago metropolitan area and 11 Huffman Koos furniture stores in New Jersey and New York. -0- 3/29/93 /CONTACT: Tom Pabst of JG Industries, 312-850-8000/ (JGIN)
CO: JG Industries, Inc.; Milgram Kagan Corp.; Brown Group, Inc. ST: Illinois IN: REA SU:
TS -- NY073 -- 0569 03/29/93 13:41 EST
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|Date:||Mar 29, 1993|
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