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) August 16, 2000
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Heilig-Meyers Company
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(Exact name of registrant as specified in its charter)
Virginia 1-8484 54-0558861
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) file number) Identification No.)
12560 West Creek Parkway, Richmond, Virginia 23238
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (804) 784-7300
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N/A
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(Former name or former address, if changed since last report)
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Item 3. Bankruptcy or Receivership
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On August 16, 2000, Heilig-Meyers Company, a Virginia corporation (the
"Company"), and certain of its subsidiaries, filed voluntary petitions for
reorganization under Chapter 11, Title 11 of the United States Code (the
"Bankruptcy Code") with the United States Bankruptcy Court for the Eastern
District of Virginia in Richmond, Virginia (the "Bankruptcy Court"), lead case
number 00-34533. The Company intends to remain in possession of its assets and
continue in the management and operation of its businesses and properties,
subject to the provisions of the Bankruptcy Code and supervision and orders of
the Bankruptcy Court, and to pay the post-petition claims of its various vendors
in the ordinary course of business.
Item 5. Other
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The Company has also entered into a $215 million debtor-in-possession
financing facility with a group of lenders led by Fleet Retail Finance, Inc. and
Back Bay Capital Funding, LLC (the "Facility"). The Bankruptcy Court has granted
interim approval of the Facility which authorizes the Company to draw up to $175
million under the Facility. A final hearing on the Facility has been set for
September 27, 2000.
On August 16, 2000, the Bankruptcy Court entered an order authorizing
the Company to pay certain pre-petition wages, salaries, benefits and other
employee obligations, as well as to continue in place various employee
compensation programs and procedures.
On August 16, 2000, in conjunction with the Company's announcement of
its Chapter 11 filing with the Bankruptcy Court, the Company announced that it
had reached an agreement in principle to out-source its Heilig-Meyers customer
credit program to a third party provider. In an effort to maximize sales
opportunities and receive the most favorable terms possible under a third party
arrangement, the Company has obtained proposals from additional third party
providers. With the store base that the Company currently plans to operate going
forward, the Company believes that its credit out-sourcing needs will likely
require an arrangement with a primary provider as well as arrangements with
secondary providers who specialize in higher credit risk extension and
collection. The Company is currently reviewing proposals from these various
third party providers and accordingly continues to provide limited revolving
credit to customers through its in-house program. The failure to enter into
satisfactory arrangements with third party credit providers in a timely manner
would have a material adverse effect on the Company.
On August 16, 2000, the Company issued a news release announcing the
Company's Chapter 11 filing with the Bankruptcy Court, a copy of which is
attached hereto as Exhibit 99.1 and is incorporated herein by this reference.
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Item 7. Financial Statements and Exhibits
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(c) Exhibits
The following exhibit is filed as a part of this report:
99.1 Press Release dated August 16, 2000.
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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
Date: August 31, 2000 By: s/Donald S. Shaffer
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Donald S. Shaffer
President and
Chief Executive Officer
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Exhibit Index
Exhibit
No. Description
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99.1 Press Release dated August 16, 2000.