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VALUE MERCHANTS RECEIVES CREDIT EXTENSION WHILE CONTINUING TO NEGOTIATE NEW CREDIT FACILITY

 MILWAUKEE, July 30 /PRNewswire/ -- Value Merchants, Inc. (NYSE: VMI) has received an extension to Aug. 9, 1993, of its current working capital facility from its existing lenders to allow the company to continue negotiations of a two-year $60 million credit facility to refinance its existing debt and provide for its on-going working capital needs.
 "We have made significant progress in pursuit of this new line of credit, however, there can be no assurance at this time that a new facility will be put in place," Steven J. Appel, president and chief executive officer of the company, stated. "There are still a number of significant conditions to be met," he said.
 "Our progress to date is due to the efforts and cooperation of a great many people and organizations," Appel stated. "In its efforts to meet the conditions of the credit facility proposal, Value Merchants has secured agreements to defer certain payments due vendors, landlords and other creditors and we have the continued participation of our current bankers," Appel said.
 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 through an exchange offer. "Holders of more than a majority in principal amount of the subordinated notes have consented through an exchange of the current 11 percent notes for 9 percent convertible notes to reduce the minimum consolidated net worth the company is required to maintain," Appel said. Noteholder consent and the exchange are conditioned upon closing of the new credit facility.
 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- 7/30/93
 /CONTACT: Gary I. Kastel, director of communications, Value Merchants, Inc., 414-274-2976/
 (VMI)


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

KR -- DE027 -- 7998 07/30/93 18:23 EDT
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Publication:PR Newswire
Date:Jul 30, 1993
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