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):
JANUARY 11, 1995
HECHINGER COMPANY
(Exact name of registrant as specified in its charter)
Delaware 0-7214 52-1001530
(State or other (Commission (I.R.S. Employer
jurisdiction of File Number) Identification
incorporation) Number)
3500 Pennsy Drive
Landover, MD 20785
(Address of principal executive offices) (zip code)
(301) 341-1000
(Registrant's telephone number, including area code)
Item 5. Other Events.
On January 11, 1995, Hechinger Company issued the press
release attached as Exhibit 99 hereto and incorporated herein by
reference.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(C) Exhibits.
Exhibit No.
99 Press release dated January 11, 1995.
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.
Hechinger Company
By: /s/ W. CLARK McCLELLAND
W. Clark McClelland
Executive Vice President and
Chief Financial Officer
Date: January 11, 1995
EXHIBIT INDEX
Exhibit No. Description Sequential
Page
99 Press release dated January 11, 1995
_________________________________________________________________
Exhibit 99
3500 Pennsy Drive
Landover, Maryland 20785-
1691
HECHINGER
FOR IMMEDIATE RELEASE
HECHINGER COMPANY ANNOUNCES PLANS TO IMPROVE COMPETITIVE
POSITIONING
LANDOVER, MARYLAND -- January 11, 1995 -- Hechinger
Company (NASDAQ-NNM: HECHA and HECHB) today announced a
series of actions to improve the Company's competitive
position in the home improvement industry. The specific
actions announced today are:
- the closing of 14 Home Quarters Warehouse stores,
primarily in North and South Carolina;
- the converting of the Columbus, Ohio market to Home
Quarters Warehouse stores; and
- the closing of four older Hechinger stores.
The Company also announced its expansion, relocation and
remodelling plans for the next 12 months.
John W. Hechinger, Jr., President and Chief
Executive Officer, said, "The plans announced today are all
driven by our objective to be the leader in the markets we
serve. We believe that focusing our capital and human
resources on this objective will provide for better returns
to our shareholders."
Mr. Hechinger continued, "We are first and foremost
concerned about the welfare of our employees affected by
these actions. We will do everything we can to lessen the
problems they may face and show them the compassion they
deserve." The Company will offer severance pay (based on
length of service) and outplacement assistance to employees
affected by these actions. In addition, the vast majority of
employees currently working in the Columbus, Ohio area will
be offered positions in the Home Quarters Warehouse stores to
be opened in that market.
The Home Quarters Warehouse stores, primarily in
North and South Carolina are expected to close in 1995. Mr.
Hechinger said, "The markets in North and South Carolina have
become over-stored and have created unsatisfactory levels of
performance. Our stores in these markets are currently
generating annual sales of approximately $12 million per
store, which is less than half of the $30 million per store
average for the remaining 47 Home Quarters Warehouse stores."
In the Columbus, Ohio market, the Company plans to
replace its four traditional Hechinger stores with
"Chesapeake Class" Home Quarters Warehouse stores in 1995.
Mr. Hechinger said, "We believe our "Chesapeake Class" Home
Quarters Warehouse stores will be very successful in Columbus
and will allow us to continue to be the leader in the
market." Two of the "Chesapeake Class" stores will be in
new locations and are currently under construction. A third
"Chesapeake Class" store will open in an existing 100,000
square foot Hechinger store location. Other new store
locations in Columbus will be announced as real estate plans
are finalized.
The Company also intends to close four older
Hechinger stores during the year. This plan includes closing
two stores in Rochester, New York; one in Roanoke, Virginia;
and one in Ft. Washington, Maryland.
In connection with these actions, the Company will
record a store closing charge of approximately $40 million,
after-tax ($.94 per share), in the fourth quarter of fiscal
1994, which ends January 28, 1995. The store closing charge
consists primarily of the estimated costs to dispose of the
inventory, property and equipment in these locations.
The Company's expansion and relocation plans for
fiscal 1995 call for opening approximately 10 to 12 new
"Chesapeake Class" Home Quarters Warehouse stores, including
the following nine: Bloomfield, Michigan; Livonia, Michigan;
Newington, New Hampshire; Natick, Massachusetts; the three
stores in Columbus, Ohio; and the relocation of stores in
Norfolk, Virginia and Portland, Maine. Additionally,
approximately 18 existing Home Quarters Warehouse stores will
be remodelled to incorporate key aspects of the "Chesapeake
Class" format.
During 1995, the Company will begin construction on
three new Hechinger Home Project Centers. In addition,
approximately six traditional Hechinger stores are scheduled
for remodelling to the Home Project Center format during
1995.
Hechinger Company, a leading specialty retailer,
serves the growing home improvement industry through two
operating subsidiaries: Hechinger Stores Company and Home
Quarters Warehouse, Inc.
#####
Contact: Richard S. Gross
Corporate Controller
(301) 341-0443
