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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934.
Date of Report (Date of earliest event reported) September 19, 1997
Cragar Industries, Inc.
(Exact name of registrant as specified in its charter)
Delaware 1-12559 86-0721001
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
4636 North 43rd Avenue, Phoenix, Arizona 85031
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (602) 247-1300
Not Applicable
(Former name or former address, if changed since last report.)
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ITEM 5. OTHER EVENTS.
On September 19, 1997, the Company's principal customer, Super
Shops, Inc., filed for reorganization under Chapter 11 of the Federal
Bankruptcy Code. At August 31, 1997, receivables owed to the Company by
Super Shops, Inc. totaled $3,527,994. The Company is in the process of
reviewing various alternatives with respect to this matter. Failure to
resolve this matter satisfactorily could have a material adverse effect on
the Company.
The Company has reviewed its revolving credit facility with Norwest
Business Credit, Inc. ("NBCI") in light of this situation. As of September
19, 1997 the Company had approximately $5,646,296 outstanding under the
revolving credit facility. The filing of reorganization by Super Shops
rendered its accounts receivable ineligible under the revolving credit
facility with NBCI, making the Company overadvanced as of September 23,
1997 by approximately $781,401. In addition, the revolving credit facility
requires the maintenance of certain specified financial ratios. With the
filing of reorganization by Super Shops, it is likely the Company does not
meet these requirements. The Company intends to seek waivers or amendments
to its revolving credit facility to bring it into compliance. Failure to
obtain such waivers or amendments could have a material adverse effect on
the Company.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
CRAGAR INDUSTRIES, INC.
Date: September 24, 1997 /s/ Michael L. Hartzmark
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Michael L. Hartzmark
President, Treasurer & CEO
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