Exhibit 99.2
WEINER'S STORES, INC. ANNOUNCES CREDIT AGREEMENT
Houston, Texas (Business Wire)...October 16, 2000 - Weiner's Stores, Inc.
(OTCBB:WEIR) announced today that it has signed a debtor-in-possession revolving
credit agreement with a $35.0 million working capital fund, including a $15.0
million sub-facility for the issuance of letters of credit, with its current
lender, The CIT Group/Business Credit, Inc. This agreement is secured by
substantially all of the Company's assets. The proceeds may be used solely to
fund working capital in the ordinary course of business and for general
corporate purposes. The revolving credit agreement requires that the Company
maintain certain financial covenants and stipulates certain borrowing
limitations based on the Company's inventory levels.
Raymond J. Miller, Chairman and Chief Executive Officer, stated, "We are pleased
to announce the completion of this agreement, which provides our vendors the
assurances needed to continue to ship inventory for our holiday and spring
seasons. It was fantastic to see the support from our lender to help us
implement the changes we must make in introducing a new product mix to our
stores. We look forward to working with them and our vendors to secure the
future of the Company.
The Company had previously announced on October 16, 2000 that it had filed for
reorganization under Chapter 11 of the federal bankruptcy code and was
streamlining operations, including the closure of 44 stores. Further, the
Company announced the redesign of it merchandising and marketing, scheduled to
take place in early 2001.
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
