SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K/A
AMENDMENT NUMBER 1
Current Report
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) December 31, 1996
Heilig-Meyers Company
(Exact name of registrant as specified in its charter)
Virginia
(State or other jurisdiction of incorporation)
1-8484 54-0558861
(Commission file number) (IRS Employer Identification No.)
2235 Staples Mill Road, Richmond, Virginia 23230
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (804) 359-9171
- --------------------------------------------------------------------------------
(Former name or former address, if changed since last report)
<PAGE>
Item 7. Financial Statements and Exhibits
(a) Financial Statements
The following audited consolidated financial statements of Rhodes and
the related Report of Independent Public Accountants are set forth on pages F-2
through F-18 of the Prospectus/Proxy Statement included in Heilig-Meyers'
registration statement on Form S-4 (No. 333-16425), which became effective on
November 22, 1996 ("Prospectus/Proxy Statement"). Such information is
incorporated herein by reference.
Consolidated Balance Sheets as of February 28 (29), 1995 and 1996.
Consolidated Statements of Operations for each of the years ended
February 28 (29), 1994, 1995 and 1996.
Consolidated Statements of Shareholders' Equity for each of the years
ended February 28 (29), 1994, 1995 and 1996.
Consolidated Statements of Cash Flows for each of the years ended
February 28 (29), 1994, 1995 and 1996.
Notes to Consolidated Financial Statements (February 28 (29), 1996,
1995 and 1994).
The following audited financial statements of Weberg Division (a
division of Weberg Enterprises, Inc.), which was acquired by Rhodes on November
1, 1995, and the related Independent Auditors' Report are set forth on pages
F-19 through F-26 of the Prospectus/Proxy Statement. Such information is
incorporated herein by reference.
Balance Sheet as of December 31, 1994.
Statement of Income for the year ended December 31, 1994.
Statement of Cash Flows for the year ended December 31, 1994.
Notes to Financial Statements (Year ended December 31, 1994).
The unaudited condensed consolidated interim financial statements of
Rhodes as of November 30, 1996 and for the nine months ended November 30, 1996
and 1995 are set forth below.
RHODES, INC.
================================================================================
CONDENSED CONSOLIDATED BALANCE SHEET
(In Thousands)
(Unaudited)
November 30
ASSETS 1996
--------------------------------------------------------- -----------
Current Assets:
Cash $ 508
Accounts Receivable 8,380
Inventories at LIFO Cost 82,029
Prepaid Expenses and Other 11,983
----------
Total Current Assets 102,900
Property and Equipment, Net 78,126
Capitalized Real Estate Leases, Net 5,736
Intangible Assets, Net 66,429
Other Assets 5,165
----------
Total Assets $ 258,356
==========
LIABILITIES AND SHAREHOLDERS' EQUITY
---------------------------------------------------------
Current Liabilities:
Notes and Loans Payable - Current Portion $ 15,219
Accounts Payable, Accruals and Other 94,750
----------
Total Current Liabilities 109,969
Deferred Income Taxes 6,862
Long-Term Debt/Capital Leases 76,992
Total Shareholders' Equity 64,533
----------
Total Liabilities and Shareholders' Equity $ 258,356
==========
See note to condensed consolidated interim financial statements.
<PAGE>
RHODES, INC.
================================================================================
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands Except Per Share Data)
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended
------------------------------------------
November 30 November 30
1996 1995
----------------- ----------------------
<S> <C>
Net Sales $ 375,258 $ 296,543
Cost of Goods Sold 206,191 153,727
----------------- ------------------
Gross Profit 169,067 142,816
Finance Charges and Insurance Commissions 4,998 4,281
----------------- ------------------
Operating Expenses:
Selling 66,142 49,767
General and Administrative 107,657 78,457
Amortization of Intangibles 2,362 2,179
Provision for Credit Losses 330 71
Other (Income), Net 156 (139)
Non-Recurring One-Time Charge --- 2,400
----------------- ------------------
176,647 132,735
----------------- ------------------
Income (Loss) Before Interest Expense and Income Taxes (2,582) 14,362
Interest Expense, Net 7,170 4,817
----------------- ------------------
Income (Loss) Before Income Taxes (9,752) 9,545
Provision for Income Taxes (3,998) 3,914
----------------- ------------------
Net Income (Loss) (5,754) 5,631
================= ==================
Net Income (Loss) Per Weighted Average Share Outstanding $ (0.63) $ 0.60
================= ==================
Weighted Average Shares Outstanding 9,157 9,328
================= ==================
</TABLE>
See note to condensed consolidated interim financial statements.
<PAGE>
RHODES, INC.
===============================================================================
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended
----------------------------------------
November 30 November 30
1996 1995
----------------- -----------------
<S> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ (5,754) $ 5,631
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 10,380 7,924
Changes in current assets and liabilities:
Receivables, net (3,168) (4,455)
Inventories 5,936 (8,959)
Prepaid expenses and other 4,614 (616)
Deferred tax assets (4,368) (44)
Accounts payable and accrued
liabilities 6,410 9,575
Deferred income on warranties, undelivered
sales and credit commissions 1,668 2,173
------------- -------------
Net cash provided by operating activities $ 15,718 $ 11,229
------------- -------------
CASH FLOWS PROVIDED BY (USED BY) INVESTING ACTIVITIES:
Purchase of Weberg - (30,125)
Additions to property and equipment (9,908) (17,148)
Additions to intangible assets (859) (138)
Decrease in other assets, net 655 447
Decrease in obligations under capital leases (334) (799)
------------- -------------
Net cash used by investing activities $ (10,446) $ (47,763)
------------- -------------
CASH FLOWS PROVIDED BY (USED BY) FINANCING ACTIVITIES:
Proceeds from (repayment of) long-term debt (5,343) 35,673
Purchase of stock-employee stock purchase plan 267 350
Repurchase of stock - (2,490)
------------- -------------
Net cash provided by (used by) financing
activities $ (5,076) $ 33,533
------------- -------------
INCREASE (DECREASE) IN CASH 196 (3,001)
CASH AT BEGINNING OF PERIOD 312 3,268
============= =============
CASH AT END OF PERIOD $ 508 $ 267
============= =============
SUPPLEMENTAL DISCLOSURE:
CASH PAYMENTS FOR:
Interest $ 7,170 $ 4,817
============= =============
Income taxes $ 87 $ 3,776
============= =============
</TABLE>
See note to condensed consolidated interim financial statements.
RHODES, INC.
===============================================================================
NOTE TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
(Unaudited)
1. BASIS OF PRESENTATION
The interim financial information presented herein as of November 30,
1996 and for the nine months ended November 30, 1996 and 1995 is
unaudited. The financial information reflects all normal recurring
adjustments.
Accounting policies followed by Rhodes, Inc. are described in Note 1 to
the audited consolidated financial statements of Rhodes as of February
29, 1996, referred to above.
<PAGE>
(b) Pro Forma Financial Information
The following unaudited pro forma combined statements of earnings for
the year ended February 29, 1996 and the nine months ended November 30, 1996
give effect to (i) acquisitions of certain assets from various entities by
Heilig-Meyers and by Rhodes that have occurred and (ii) the acquisition of
Rhodes (the "Merger"). The pro forma information is based on the historical
financial statements of Heilig-Meyers and Rhodes giving effect to the Merger
under the purchase method of accounting and the assumptions and adjustments
described in the accompanying notes to the unaudited pro forma financial
statements. The following unaudited pro forma combined balance sheet gives
effect to the acquisition of Rhodes as if it had been completed as of November
30, 1996.
The unaudited pro forma statements have been prepared by the management
of Heilig-Meyers and Rhodes based upon the historical information included
herein and other financial information. These pro forma statements do not
purport to be indicative of the results of operations or financial position
which would have occurred had the acquisition been made at the beginning of the
periods or as of the date indicated or of the financial position or results of
operations which may be obtained in the future.
Heilig-Meyers will account for the transaction under the purchase
method of accounting. Accordingly, the cost to acquire Rhodes will be allocated
to the assets acquired and liabilities assumed according to their respective
fair values. The final allocation of the purchase price is dependent upon
certain valuations and other studies that have not progressed to a stage where
there is sufficient information to make such a complete allocation in the
accompanying pro forma statements. Accordingly, the purchase allocation
adjustments are preliminary and have been made solely for the purpose of
preparing such pro forma statements.
HEILIG-MEYERS COMPANY
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE YEAR ENDED FEBRUARY 29, 1996
<TABLE>
<CAPTION>
HEILIG-MEYERS RHODES
---------------------------------------- -----------------------------------------
OTHER OTHER PRO FORMA
HISTORICAL ACQUISITIONS (A) PRO FORMA HISTORICAL ACQUISITIONS (B) PRO FORMA ADJUSTMENTS (C)
---------- ---------------- ---------- ---------- ---------------- --------- ---------------
<S> <C>
(IN THOUSANDS)
REVENUES:
Sales............... $1,138,506 $ 92,750 $1,231,256 $ 430,193 $ 76,015 $ 506,208
Other Income........ 220,843 7,900 228,743 5,822 5,822
---------- ---------------- ---------- ---------- ---------------- ---------
Total Revenues.... 1,359,349 100,650 1,459,999 436,015 76,015 512,030
---------- ---------------- ---------- ---------- ---------------- ---------
COSTS AND EXPENSES:
Costs of sales...... 752,317 62,400 814,717 225,953 46,161 272,114 55,450 (D)
(550)(E)
Selling, general and
administrative.... 436,361 32,400 468,761 190,445 29,678 220,123 (55,450)(D)
(2,325)(F)
2,300 (G)
Interest............ 40,767 4,950 45,717 6,898 1,884 8,782 (1,825)(H)
Non-recurring
charge............ 2,400 2,400
Provision for
doubtful
accounts.......... 65,379 1,600 66,979 167 61 228
---------- ---------------- ---------- ---------- ---------------- --------- ---------------
Total costs and
expenses........ 1,294,824 101,350 1,396,174 425,863 77,784 503,647 (2,400)
---------- ---------------- ---------- ---------- ---------------- --------- ---------------
EARNINGS (LOSS) BEFORE
INCOME TAXES........ 64,525 (700) 63,825 10,152 (1,769) 8,383 2,400
Provision for income
taxes............... 23,021 (250) 22,771 4,162 (726) 3,436 960 (I)
---------- ---------------- ---------- ---------- ---------------- --------- ---------------
NET EARNINGS (LOSS)... $ 41,504 $ (450) $ 41,054 $ 5,990 $ (1,043) $ 4,947 $ 1,440
---------- ---------------- ---------- ---------- ---------------- --------- ---------------
---------- ---------------- ---------- ---------- ---------------- --------- ---------------
Net earnings per
share:
Primary and
fully diluted $.84
----------
----------
Weighted average
shares:
Fully diluted 49,645
<CAPTION>
PRO FORMA
COMBINED
----------
<S> <C>
REVENUES:
Sales............... $1,737,464
Other Income........ 234,565
----------
Total Revenues.... 1,972,029
----------
COSTS AND EXPENSES:
Costs of sales...... 1,141,731
Selling, general and
administrative.... 633,409
Interest............ 52,674
Non-recurring
charge............ 2,400
Provision for
doubtful
accounts.......... 67,207
----------
Total costs and
expenses........ 1,897,421
----------
EARNINGS (LOSS) BEFORE
INCOME TAXES........ 74,608
Provision for income
taxes............... 27,167
----------
NET EARNINGS (LOSS)... $ 47,441
----------
----------
.87
----------
----------
54,220(J)
</TABLE>
See notes to pro forma condensed consolidated statements of earnings.
<PAGE>
HEILIG-MEYERS COMPANY
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE NINE MONTHS ENDED NOVEMBER 30, 1996
<TABLE>
<CAPTION>
HEILIG-MEYERS
------------------------------------------
OTHER RHODES PRO FORMA PRO FORMA
HISTORICAL ACQUISITIONS (A) PRO FORMA HISTORICAL ADJUSTMENTS (C) COMBINED
---------- ---------------- ---------- ---------- --------------- ----------
<S> <C>
(IN THOUSANDS)
REVENUES:
Sales............................... $ 939,406 $ 44,900 $ 984,306 $ 375,258 $1,359,564
Other Income........................ 175,506 3,650 179,156 4,998 184,154
---------- ---------------- ---------- ---------- ----------
Total Revenues................... 1,114,912 48,550 1,163,462 380,256 1,543,718
---------- ---------------- ---------- ---------- ----------
COSTS AND EXPENSES:
Costs of sales...................... 613,032 30,550 643,582 206,191 55,750 (D) 905,023
(500)(E)
Selling, general and
administrative................... 362,445 15,500 377,945 176,317 (55,750)(D) 498,337
(1,900)(F)
1,725 (G)
Interest............................ 33,415 2,500 35,915 7,170 (1,660)(H) 41,425
Provision for doubtful accounts..... 60,027 700 60,727 330 61,057
---------- ---------------- ---------- ---------- --------------- ----------
Total costs and expenses......... 1,068,919 49,250 1,118,169 390,008 (2,335) 1,505,842
---------- ---------------- ---------- ---------- --------------- ----------
EARNINGS (LOSS) BEFORE INCOME TAXES... 45,993 (700) 45,293 (9,752) 2,335 37,876
Provision for income taxes............ 16,384 (250) 16,134 (3,998) 934 (I) 13,070
---------- ---------------- ---------- ---------- --------------- ----------
NET EARNINGS (LOSS)................... $ 29,609 $ (450) $ 29,159 $ (5,754) $ 1,401 $ 24,806
---------- ---------------- ---------- ---------- --------------- ----------
---------- ---------------- ---------- ---------- --------------- ----------
Net earnings per share:
Primary and fully diluted........... $ .60 $ .46
---------- ----------
---------- ----------
Weighted average shares:
Fully diluted...................... 49,427 54,002(J)
</TABLE>
See notes to pro forma condensed consolidated statements of earnings.
NOTES TO PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(A) Amounts reflect the pro forma results of other Heilig-Meyers
acquisitions that have occurred. These amounts include pro forma
adjustments to reflect the amortization of goodwill and additional
interest expense that would have been incurred had the acquisitions
been completed at the beginning of the period.
(B) Amounts reflect the acquisition of certain assets of Weberg by Rhodes
during fiscal year 1996. These amounts include pro forma adjustments
to reclassify certain revenue and expense amounts to conform to
Rhodes' presentation. Additionally, amounts reflect the amortization
of goodwill and additional interest expense that would have occurred
had the acquisition been completed at the beginning of the period.
(C) Heilig-Meyers expects to achieve certain synergies in relation to the
business combination. Such synergies are not included in the pro forma
adjustments.
(D) Rhodes occupancy, warehouse and delivery expenses have been
reclassified from selling, general and administrative expenses to cost
of sales to be consistent with the Heilig-Meyers presentation.
(E) Elimination of the effect of LIFO inventory on cost of goods sold.
(F) Elimination of amortization of Rhodes' historical goodwill and other
intangible assets.
(G) Amortization of estimated goodwill attributable to the transaction.
(H) To give effect to refinancing of certain Rhodes long term notes
payable.
(I) To tax effect pro forma adjustments at the statutory rate adjusted for
the tax treatment of goodwill.
(J) To give effect to the issuance of Heilig-Meyers common stock in
connection with the Merger at an exchange rate of 0.50, which is the
fraction of a share of Heilig-Meyers common stock which is issuable
in exchange for one share of Rhodes stock in the Merger.
<PAGE>
HEILIG-MEYERS COMPANY
PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
AS OF NOVEMBER 30, 1996
<TABLE>
<CAPTION>
HEILIG-MEYERS RHODES PRO FORMA PRO FORMA
HISTORICAL HISTORICAL ADJUSTMENTS (A) COMBINED
------------- ---------- --------------- ----------
<S> <C>
(AMOUNTS IN THOUSANDS)
ASSETS:
Current assets:
Cash............................................................ $ 9,858 $ 508 $ 10,366
Accounts receivable, net........................................ 617,431 8,380 625,811
Inventories..................................................... 345,953 82,029 (12,168)(B) 415,814
Other........................................................... 69,316 11,983 14,383 (C) 95,682
------------- ---------- --------------- ----------
Total Current Assets......................................... 1,042,558 102,900 2,215 1,147,673
------------- ---------- --------------- ----------
Property, plant & equipment, net.................................. 261,843 83,862 345,705
Excess cost over net assets acquired
and other, net.................................................. 212,857 71,594 (61,373)(D) 306,550
92,111 (D)
(8,639)(E)
------------- ---------- --------------- ----------
$ 1,517,258 $ 258,356 $ 24,314 $1,799,928
------------- ---------- --------------- ----------
------------- ---------- --------------- ----------
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
Notes payable................................................... $ 153,750 $ 15,219 $ 168,969
Long-term debt due within one year.............................. 99,246 99,246
Accounts payable................................................ 121,598 51,753 121,598
Accrued expenses and other...................................... 103,373 42,997 18,000 (F) 217,773
1,650 (G)
------------- ---------- --------------- ----------
Total Current Liabilities.................................... 477,967 109,969 19,650 607,586
------------- ---------- --------------- ----------
Long-term debt/capital leases..................................... 448,531 76,992 525,523
Deferred income taxes............................................. 51,605 6,862 58,467
Stockholders' equity:
Common stock, at par............................................ 97,246 9,150 (H) 106,396
Capital in excess of par value.................................. 121,505 99,976 60,047 (H) 181,552
(99,976)(H)
Retained earnings (accumulated deficit)......................... 320,404 (35,443) 35,443 (H) 320,404
------------- ---------- --------------- ----------
Total stockholders' equity................................... 539,155 64,533 4,664 608,352
------------- ---------- --------------- ----------
$ 1,517,258 $ 258,356 $ 24,314 $1,799,928
------------- ---------- --------------- ----------
------------- ---------- --------------- ----------
</TABLE>
See notes to pro forma condensed consolidated balance sheet.
<PAGE>
HEILIG-MEYERS COMPANY
NOTES TO PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
(A) The final allocation of the purchase price is dependent upon certain
valuations and other studies that have not progressed to a stage where
there is sufficient information to make such a complete allocation in
the condensed consolidated pro forma balance sheet. Accordingly, the
purchase price allocation adjustments are preliminary and have been
made solely for the purpose of preparing such pro forma balance sheet.
(B) To adjust Rhodes' LIFO inventory to a FIFO average cost basis net of
allowances for obsolescence, shrinkage and damaged goods.
(C) To record the estimated deferred income tax effects of adjustments
described in (B) and (D) through (G) herein.
(D) To remove Rhodes' net goodwill balance of $61,373 and to reflect the
net effect of pro forma adjustments that impact the excess purchase
price and other direct expenses of the Merger over the fair value of
net assets acquired which is an estimated $92,111.
(E) To adjust certain Rhodes' intangibles and other assets to estimated
fair value.
(F) To record liability for direct out-of-pocket costs and contractual
obligations arising due to the change in control of Rhodes and
estimated incremental costs associated with severance and relocation.
(G) To accrue prepayment penalities related to long term debt obligations
of Rhodes.
(H) To record consideration for the Merger and remove Rhodes stockholders'
equity balances:
Heilig-Meyers shares to be issued in exchange for Rhodes common
stock................................................... 4,575
Market value per share of Heilig-Meyers Common Stock on
announcement date......................................... $15.125
-------
Total value of stock exchange.............................. $69,197
-------
-------
<PAGE>
(c) Exhibits
See the Index to Exhibits below.
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities and Exchange Act of
1934, the registrant has caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
HEILIG-MEYERS COMPANY
February 19, 1997 By: /s/ Joseph R. Jenkins
---------------------
Joseph R. Jenkins
Executive Vice President and
Chief Financial Officer
<PAGE>
Index to Exhibits
Exhibit Number and Description
2.2 Amendment No. 1 dated as of December 31, 1996 to the Agreement and Plan
of Merger, dated as of September 17, 1996 among Rhodes, Inc.,
Heilig-Meyers Company and HM Merger Subsidiary, Inc.
23.1 Consent of Arthur Andersen LLP.
23.2 Consent of Deloitte & Touche LLP.
Exhibit 2.2
AMENDMENT NO. 1
TO
AGREEMENT AND PLAN OF MERGER
This Amendment No. 1, dated as of December 30, 1996 to the Agreement
and Plan of Merger, dated as of September 17, 1996 (the "Original Agreement") by
and among Heilig-Meyers Company (the "Purchaser"), HM Merger Subsidiary, Inc.
and Rhodes, Inc. (the "Company").
The parties to the Original Agreement wish to amend the Original
Agreement to delete the requirement that the Purchaser assume outstanding
options to purchase shares of Company under the Rhodes, Inc. stock option
program.
NOW, THEREFORE, the parties agree as follows:
1. All terms defined in the Original Agreement shall have the same
meanings unless the context requires otherwise.
2. Section 6.10 shall be deleted in its entirety and the following
inserted in lieu thereof:
Section 6.10 Stock Options.
(a) Before or at the Effective Time, the Company shall cancel
each outstanding option to purchase shares of Company Common Stock (a
"Company Stock Option") issued pursuant to any incentive or stock
option program of the Company (the "Company Stock Plan") whether such
Company Stock Options are vested or unvested, and the Purchaser shall
have no obligation to assume any Company Stock Options.
(b) Before or at the Effective Time, Purchaser shall recommend
for consideration to its Compensation Committee (or Sub-Committee) a
grant of options to purchase shares of Purchaser's Common Stock under
Purchaser's 1994 Stock Option Plan ("Purchaser's Option Plan") to each
Company executive employee who as of the
<PAGE>
Effective Time (before any cancellation by virtue of Section 6.10(a)
above) holds an outstanding Company Stock Option. The terms and
conditions of the grant of such stock option awards made by Purchaser
shall be determined by Purchaser's Compensation Committee (or
Sub-committee); provided, however, that the number of shares covered by
each option to be granted under Purchaser's Option Plan shall be
determined in accordance with the formula approved by the Chairman and
Chief Executive Officer of the Company (or his designee) and the
Chairman and Chief Executive Officer of the Purchaser (or his
designee). At the closing, the Purchaser shall deliver a certificate
executed by an officer of the Purchaser certifying that the Purchaser's
Compensation Committee (or Sub-committee) has granted stock option
awards as contemplated by this Section 6.10(b).
3. This Amendment shall be governed by and construed in accordance with
its laws of the State of Virginia without giving effect to the provisions
thereof relating to conflict of laws.
4. This Amendment may be executed in counterparts, each of which shall
be deemed an original, but all of which together shall constitute one and the
same agreement.
5. The Original Agreement and this Amendment shall be read together to
constitute one agreement.
<PAGE>
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
duly executed on the day and year first above written.
HEILIG-MEYERS COMPANY
By: /s/ Roy B. Goodman
------------------------------
Name: Roy B. Goodman
Title: Sr. Vice-President
HM MERGER SUBSIDIARY, INC.
By: /s/ Roy B. Goodman
-----------------------------
Name: Roy B. Goodman
Title: Secretary and Treasurer
RHODES, INC.
By: /s/ J.H. Dugan
-----------------------------
Name: J.H. Dugan
Title: Sr. V.P.
[Arthur Andersen LLP Letterhead]
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
As independent public accountants, we hereby consent to the incorporation by
reference in this amended Form 8-K of our reports dated April 25, 1996 included
in Registration Statement File No. 333-16425 and into the Company's previously
filed Registration Statement File Nos.: 2-96961, 33-28095, 33-35263, 33-43791,
33-50086, 33-54261, 33-64616, and 333-07753 and to all references to our firm.
/s/ Arthur Andersen LLP
Atlanta, Georgia
February 17, 1997
INDEPENDENT AUDITORS' CONSENT
We consent to the incorporation by reference in this Amendment No. 1 to Form 8-K
of Heilig-Meyers Company to be filed on or about February 19, 1997 of our report
dated January 5, 1996 (Report) on the financial statements of Weberg Division (a
division of Weberg Enterprises, Inc.) as of and for the year ended December 31,
1994, which is contained in Registration Statement No. 333-16425 of
Heilig-Meyers Company on Form S-4. We also consent to the incorporation by
reference of such Report in Registration Statements Numbered 2-96961, 33-28095,
33-35263, 33-50086, 33-64616, 33-43791 and 35-54261 on Form S-8 of Heilig-Meyers
Company and to the incorporation by reference of such Report in Registration
Statement No. 333-07753 on Form S-3 of Heilig-Meyers Company.
/s/ Deloitte & Touche LLP
Denver, Colorado
February 18, 1997
