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VALUE MERCHANTS INC. EXTENDS EXPIRATION DATE OF SUBORDINATED NOTE EXCHANGE OFFER AND RECEIVES CREDIT EXTENSION WHILE PROCESS CONTINUES TO OBTAIN NEW CREDIT FACILITY

 MILWAUKEE, Aug. 9 /PRNewswire/ -- Value Merchants, Inc. (NYSE: VMI) has received an extension to Aug. 16, 1993, of its current working capital facility to allow the company to continue negotiations of a new two-year, $60 million credit facility. This facility would refinance existing debt and provide for the company's on-going working capital needs.
 The company also announced today that it was extending the Expiration Date of its Subordinated Note Exchange Offer and Consent Solicitation through Aug. 16, 1993. The company previously announced that it is soliciting the consent of the holders of its 11-percent Subordinated Notes to reduce the minimum consolidated net worth required to be maintained by the company. The consent solicitation is being made through an exchange offer in which the company is offering to exchange its newly authorized 9 percent Convertible Notes for up to a majority in principal amount of the 11 percent Subordinated Notes. As of Aug. 9, 1993, holders of approximately 92 percent in principal amount of Subordinated Notes have consented to this reduction either by tendering their Subordinated Notes for Convertible Notes or by electing to retain their Subordinated Notes and providing their consent to the reduction. The Exchange Offer and the Consent Solicitation are conditioned upon closing of the new credit facility. The company expects to extend the Expiration Date, if necessary, during its efforts to obtain a new credit agreement facility.
 All tenders of Subordinated Notes and Consents are irrevocable unless they are withdrawn by written notice received by the Exchange Agent for the Exchange Offer (Firstar Trust Company, Milwaukee) before the Expiration Date.
 The operations of Value Merchants, Inc. include 420 Everything's $1.00 close-out variety stores and 118 Toy Liquidators close-out toy stores. Additionally, the company operates the nation's largest wholesaler of close-out toys.
 -0- 8/9/93
 /CONTACT: Gary I. Kastel, director of communications, Value Merchants, Inc., 414-274-2976/
 (VMI)


CO: Value Merchants, Inc. ST: Wisconsin IN: REA SU: FNC

AR -- CL017 -- 0933 08/09/93 17:30 EDT
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Publication:PR Newswire
Date:Aug 9, 1993
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