Exhibit 99.1
WEINER'S STORES, INC. FILES FOR CHAPTER 11 REORGANIZATION
WILL CLOSE STORES TO EXIT UNPROFITABLE MARKETS;
NEW STORE DESIGNS, MERCHANDISING, LABELS TO BE UNVEILED
Houston, Texas (Business Wire)...October -16, 2000 - Weiner 's Stores, Inc.
(OTCBB:WEIR) a 75 year old Houston-based family retailer today filed to
reorganize under Chapter 11 of the federal bankruptcy code. The Company has
experienced operating losses through the first half of fiscal 2000 fueled by
significant declines in sales of nationally branded goods. These results
contributed primarily to significant cash flow problems, an increasingly common
event in the retail industry.
Raymond J. Miller, Chairman and Chief Executive Officer stated, "While we are
disappointed that we had to seek the bankruptcy court's protection, our cash
flow problems at the time we were purchasing inventory for the forthcoming
holiday season made it necessary. The Company plans to seek Delaware bankruptcy
court approval today for a $35.0 million debtor in possession revolving credit
agreement. We are confident that the changes we are implementing and the
strategic direction we have chosen will position Weiner's for many years."
The Company further announced that it will streamline its operations, closing 44
stores that were performing poorly or were located in unprofitable markets that
the Company has chosen to exit. Approximately 1,100 employees ultimately will be
affected by these closings. While store closing sales are starting immediately,
the actual timing of each closing has not yet been determined. Half of the
Company's markets will experience no store closings.
The Company will substantially redesign its merchandising and marketing in early
2001, transforming the neighborhood apparel specialty store to a more complete
products-line store. The stores will provide high value through moderate pricing
on first-quality and branded products for the entire family in under-served
inner-city markets.
"The store closings are regrettable, but necessary to help us realize our
strategic plans. These stores, while adding to the sales volume, were further
eroding our cash flow. We can now shift our focus to the new Weiner's stores,"
said Mr. Miller.
"Weiner's will be the only first quality full product line store conveniently
located in predominantly urban inner city markets. We expect this unique
positioning to provide the Company the ability to profitably weather consumer
buying fads and market shifts. Over the past few years, the Company has made
significant progress in planned store initiatives, but we have been continually
plagued by sluggish sales. While sales in some of our mainstay product lines,
including jeans and branded athletic wear and shoes, have been soft, other new
product lines have performed exceptionally well," Mr. Miller stated. "Sales of
home products are up 60 percent this year and toys and electronics are up
approximately 40 percent. Our customers are telling us what they want and the
new Weiner' s product mix will meet their needs and expectations."
The Company will be ready to roll out its revamped stores after the holiday
season. The stores will be redesigned to further enhance toys and electronics,
small appliances, furniture, bed and bath shops, and housewares and home
fashions.
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In announcing the store closings, the Company reported that 16 stores in New
Orleans, Baton Rouge and Shreveport areas will be closed, but expects its other
Louisiana stores to remain open. All four stores in Little Rock, Arkansas will
be closed. Texas store closings include, the Houston metropolitan area (12 of
43), Golden Triangle (all four), Northeast Texas (five of 13), Corpus Christi
(two of five) and San Antonio (one of 10). No stores will be closed in Austin,
Dallas/Ft. Worth, El Paso, the Rio Grande Valley or Southwest Texas. Stores in
Mississippi and Alabama will also remain open.
After the store closings are complete the Company will operate 97 stores.
Weiner's is a convenient neighborhood family retailer that offers a complete
assortment of branded products for value-conscious consumers. Currently,
approximately 3,750 associates are employed at the 141 stores that are operated
in Texas, Louisiana, Mississippi, Arkansas and Alabama.
This press release contains forward-looking statements. Such statements
inherently are subject to a variety of risks and uncertainties that could cause
actual results to differ materially from those projected. Such risks and
uncertainties include, among others, general economic and business conditions,
changes in foreign, political, social and economic conditions, regulatory
initiatives and compliance with governmental regulations, the ability of the
Company and its competitors to predict fashion trends and customer preferences
and achieve further market penetration and additional customers, consumer
apparel buying patterns, adverse weather conditions, inventory risks due to
shifts in market demand and various other matters, many of which are beyond the
Company's control. These forward-looking statements speak only as of the date of
this press release. The Company expressly disclaims any obligation or
undertaking to release publicly any updates or revisions to any forward-looking
statement contained herein to reflect any change in the Company's expectations
with regard thereto or any change in events, conditions or circumstances on
which such statement is based.
For Immediate Release
Contact: Bruce E. Hicks
Darcy Communications
281/313-2200
