Bradlees to Conduct Orderly Wind-Down of Its Business
BRAINTREE, Mass.--(BUSINESS WIRE)--Dec. 26, 2000--Bradlees, Inc.(NASDAQ:BRAD) today announced it has filed for protection pursuant to Chapter 11 of the US Bankruptcy code in order to conduct an orderly wind-down of its business and sale of its assets. Bradlees and its Board of Directors had explored a number of options, including strategic consolidation, before determining that an orderly wind-down of operations offered the best alternative to maximizing the value of the Company.
Pending bankruptcy court approval, the Company has reached an agreement to sell its inventory to a consortium led by Gordon Brothers Retail Partners LLC, based in Boston, Massachusetts. The Company expects to retain store associates through this process. The Company is also considering options with respect to the sale of its leasehold interests.
The Company will begin a phase-out of its headquarters and distribution functions beginning this week. The bankruptcy court granted a request to permit a payment of partial severance to employees.
In its petition, the Company cited a general economic downturn, including rising interest rates and higher gas and heating oil prices, as factors which have reduced the disposable income available to Bradlees' core customers. In addition, the filing stated that new competition, unseasonable weather in the first half of 2000, and more recently, the tightening of trade credit and curtailment of inventory shipments had an adverse affect on the Company's ability to continue to operate.
Bradlees operates 105 stores and three distribution centers in seven Northeast states with sales of $1.5 billion in 1999. Bradlees offers an assortment of merchandise focused on basic and casual apparel, basic and fashion items for the home, and commodity and convenience products. The Company employs approximately 9,800 employees.
Safe Harbor Statement: This press release may contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Any such statements are subject to important factors which could cause the Company's actual results to differ from those anticipated by the forward-looking statements. These factors are referenced in the Company's latest Form 10K and in other SEC filings.
CONTACT:
Bradlees, Inc.
Fred McGrail
Vice President
Corporate Communications
and Investor Relations
781-380-8354
KEYWORD: MASSACHUSETTS
BW2129 DEC 26,2000
14:26 PACIFIC |
