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JG INDUSTRIES ENTERS INTO STOCK PURCHASE AND LOAN AGREEMENT

 CHICAGO, Nov. 4 /PRNewswire/ -- JG Industries, Inc. (NASDAQ: JGIN) announced today that JG and Sussex Group, Ltd. (an indirect majority- owned subsidiary of JG) have entered into a stock purchase and loan agreement with The Jupiter Corp. (the holder of approximately 55 percent of JG's outstanding common stock). Under the terms of the agreement, Jupiter provided a $5,075,000 loan to Sussex and JG sold its 80 percent ownership interest in Gold Shoes, Inc. to Jupiter, the 20 percent shareholder of Gold, for $225,000. In addition, the agreement requires Sussex to sell 700,000 shares of common stock of Huffman Koos Inc. (H-K) owned by Sussex (a majority-owned subsidiary of Sussex) to Jupiter on Feb. 4, 1994, in full satisfaction of the $5,075,000 loan.
 After the sale of H-K stock to Jupiter on Feb. 4, 1994, Sussex will own approximately 38.3 percent of H-K's outstanding common stock and Jupiter will own approximately 17.9 percent of H-K's outstanding common stock based on the number of H-K shares currently outstanding. The agreement also allows Sussex to repurchase the shares from Jupiter at the same price for up to one year from Feb. 4, 1994, under certain circumstances.
 Sussex advanced the proceeds of the Jupiter loan to JG and JG used a portion of the funds received from Sussex to prepay a $3,000,000 term loan payment originally due April 15, 1994. As a result, JG's term loan lender has agreed to restructure JG's $7,875,000 term loan and Goldblatt's Department Stores, Inc. (a wholly owned subsidiary of JG) line of credit. This restructuring will improve both JG and Goldblatt's cash flow by reducing debt service requirements for fiscal 1995 and the balance of fiscal 1994.
 JG Industries, Inc. is a Chicago-based retailing 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- 11/4/93
 /CONTACT: Bill Guzik, 312-850-8000, for JG Industries/
 (JGIN)


CO: JG Industries, Inc.; Sussex Group, Ltd.; Jupiter Corp. ST: Illinois IN: REA SU:

CK -- NY100 -- 0830 11/04/93 14:49 EST
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Publication:PR Newswire
Date:Nov 4, 1993
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