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Exhibit 99.1
FOR IMMEDIATE RELEASE AUGUST 1, 2000
Heilig-Meyers to Evaluate Strategic Alternatives During Grace Period on Bond
Interest Payments
Will Work with Lazard, Freres on Restructuring Alternatives
Richmond, Va., -- Heilig-Meyers Company (NYSE:HMY) today announced
that it will defer the scheduled August 1, 2000 interest payments on its
MacSaver Financial Services 7.60% Unsecured Notes due 2007 and MacSaver
Financial Services 7.88% Unsecured Notes due 2003, and the scheduled August 15,
2000 interest payment on its MacSaver Financial Services 7.40% Unsecured Notes
due 2002. The related Note Indentures provide for 30-day grace periods to
make the interest payments, during which the Company will evaluate its strategic
alternatives and its short and long-term liquidity needs.
Heilig-Meyers also announced the engagement of the investment banking
firm of Lazard, Freres & Co. LLC to assist in exploring available strategic
alternatives with respect to a possible reorganization, restructuring, sale,
divestiture program or recapitalization of the Company.
Heilig-Meyers is the Nation's largest retailer of home furnishings and
related items. As of June 30, 2000 the Company operated 873 stores: 813 Heilig-
Meyers, 57 as the RoomStore and 3 as Homemakers. Visit the Company's retail web
sites at www.heiligmeyers.com and www.roomstore.com.
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