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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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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) March 28, 1997.
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ARDEN GROUP, INC.
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(Exact Name of Registrant as Specified in Its Charter)
Delaware
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(State or Other Jurisdiction of Incorporation)
0-9904 95-3163136
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(Commission File Number) (I.R.S. Employer Identification No.)
2020 South Central Avenue, Compton, California 90220
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(Address of Principal Executive Offices) (Zip Code)
(310) 638-2842
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Registrant's Telephone Number, Including Area Code
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Former Name or Former Address, if Changed Since Last Report
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Item 5. Other Events.
On March 28, 1997, Arden Group, Inc. (the "Company") received notice of a
decision rendered in the arbitration proceedings relating to the sale in 1993 of
the communication equipment business of the Company to Danka Business Systems
PLC ("Danka"). The arbitrators awarded the Company approximately $2,200,000 on
its claim and Danka approximately $4,065,000 on its counterclaims. As a result
of this decision, the Company is required to pay Danka approximately $1,865,000.
In an earlier arbitration between the parties related to such sale, the
Company was awarded in April 1994 $1,750,000. No income or expenses related to
that award and no expenses related to the just completed arbitration were
recognized in the 1994 and 1995 statements of operations of the Company. In
1996, arbitration costs which exceeded the first arbitration award were expensed
as discontinued operations.
The above arbitration decisions and the required adjustment to purchase
price for the transaction will result in the Company recognizing a loss, net of
taxes, from discontinued operations of approximately $2,600,000 in the first
quarter of fiscal 1997.
The award of attorneys fees and costs incurred in both arbitrations is
subject to further arbitration proceedings.
SIGNATURES
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Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed by the undersigned thereunto
duly authorized.
ARDEN GROUP, INC.
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Registrant
Date: April 4, 1997 By: ERNEST T. KLINGER
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Ernest T. Klinger
Vice President and Chief Financial Officer
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