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SOLO SERVE CORPORATION ANNOUNCES CLOSING OF DALLAS STORES

 SAN ANTONIO, Sept. 27 /PRNewswire/ -- Solo Serve Corporation (NASDAQ: SOLO) today announced its intention to close its two Dallas area stores, located in Plano and Irving, Texas.
 For the first six months of Fiscal 1993, the company's direct pre- tax operating losses attributable to these stores, including buying and distribution costs, were approximately $384,000, or $.04 per share. Management does not believe that the company's performance in the Dallas market can be significantly improved without opening additional stores to achieve greater market penetration, and given the highly competitive nature of the Dallas market, management believes that at the present time the Company's resources are better utilized in other markets. The two Dallas area stores will be closed on Oct. 2, 1993.
 In connection with the store closings, during the current quarter the company expects to establish a pre-tax reserve of between $1 million and $1.5 million, or $.11 and $.16 per share, respectively, primarily to cover lease obligations, inventory adjustments, employee costs and other related write-offs.
 Solo Serve Corporation operates a chain of off-price retail stores offering a wide selection of name brand and other merchandise at prices 20-60 percent below traditional department and specialty stores. After the closing of the two Dallas stores, the company will have 37 Solo Serve stores in Texas, Louisiana and Alabama and 9 off-price discount stores in Texas and Louisiana operating under the name Half & More. The company plans to open one additional store in Montgomery, Ala. in October 1993.
 -0- 9/27/93
 /CONTACT: Timothy L. Grady of Solo Serve Corporation, 210-662-6262/
 (SOLO)


CO: Solo Serve Corporation ST: Texas, Alabama, Louisiana IN: REA SU: RCN

WB -- NY035 -- 5858 09/27/93 10:33 EDT
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Publication:PR Newswire
Date:Sep 27, 1993
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