FORM 8-K
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report: December 21, 1998
(Date of earliest event reported)
LEVITZ FURNITURE INCORPORATED LEVITZ FURNITURE CORPORATION
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(Exact name of registrant Exact name of registrant
as specified in its charter) as specified in its charter)
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DELAWARE 1-12046 23-2351830 FLORIDA 1-5787 23-1657490
(State or other (Commission (IRS Employer (State or other (Commission (IRS Employe
jurisdiction of File Number Identification jurisdiction of File Number) Identification
incorporation) No.) incorporation) No.)
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7887 NORTH FEDERAL HIGHWAY
BOCA RATON, FLORIDA 33487
(561) 994-6006
(Address including zip code, and telephone number including area code of
registrants' principal executive offices)
Item 5. Other Events.
On December 21, 1998, Levitz Furniture Corporation, a Florida
corporation ("Levitz"), issued a press release, a copy of which is attached
as an Exhibit hereto and is incorporated by reference herein, announcing a
comprehensive strategy to focus and increase its presence in its most
productive markets, streamline its warehousing and delivery systems and
improve its operations and sales functions.
Levitz intends to close twenty seven stores in non-strategic
markets, enabling it to concentrate its resources on the sixty-three
remaining core stores on the east and west coasts, and in Minneapolis.
Levitz intends to open at least fifteen stores, including at least three in
the first half of 1999. Levitz's warehouse system will also be
consolidated from sixty-five locations to seventeen, eliminating many
redundancies in inventory and delivery. Levitz will use the proceeds from
the sale of closing stores, warehouses and associated inventory to
significantly reduce debt, refurbish certain existing stores and open new
ones.
Levitz also announced that Robert Homler, formerly president of
marketing and merchandising, is leaving Levitz. Edward L. Grund, Chairman
and Chief Executive Officer of Levitz will assume direct responsibility for
marketing and merchandising.
Levitz is a wholly owned subsidiary of Levitz Furniture
Incorporated, a Delaware corporation.
Item 7. Financial Statements and Exhibits.
(a) Not Applicable
(b) Not Applicable
(c) Exhibits:
99 Press release dated December 21, 1998.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, as amended, the Registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.
LEVITZ FURNITURE INCORPORATED
By: /s/ Edward P. Zimmer
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Edward P. Zimmer
Vice President
Date: December 29, 1998
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, as amended, the Registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.
LEVITZ FURNITURE CORPORATION
By: /s/ Edward P. Zimmer
--------------------------------
Edward P. Zimmer
Vice President
Date: December 29, 1998
INDEX TO EXHIBITS
Exhibit
Number Exhibit
99 Press release dated December 21, 1998.
Exhibit 99
LEVITZ FURNITURE TO STREAMLINE SALES AND OPERATIONS
WILL FOCUS ON STRATEGIC MARKETS ON
EAST AND WEST COASTS AND IN MINNEAPOLIS
BOCA RATON, Fla. - December 21, 1998 - Levitz Furniture Corporation
("Levitz"), today announced a comprehensive strategy to focus and increase
its presence in its most productive markets, streamline its warehousing and
delivery systems, and improve its operations and sale functions.
Edward L. Grund, who joined the company in June of this year and was named
Chairman and CEO in November, said the plan represented "the next phase in
our program to return Levitz to profitability by making our stores more
relevant to today's consumers and our systems more efficient."
The company intends to close 27 stores in non-strategic markets, enabling
it to concentrate its resources on the 63 remaining core stores on the east
and west coasts, and in Minneapolis. As a first step to capitalize on its
success in the going-forward markets, Levitz intends to open at least 15
stores, including at least three in the first half of 1999.
Remaining open will be all of the 63 stores in the states of New York, New
Jersey, Pennsylvania, Connecticut, Massachusetts, New Hampshire, Delaware,
Minnesota, Arizona, California, Oregon, Washington and Nevada. Closing
will be all 27 stores in the states of Florida, Texas, Maryland, Virginia,
Indiana, Louisiana, Kansas and Missouri. The closings will affect
approximately 1,000 of Levitz's 4,000 employees.
Mr. Grund also announced new programs to make Levitz more responsive and
competitive. The company's warehouse system, which consisted of 65
locations at the commencement of the Chapter 11 process, is being
consolidated to 17, eliminating many redundancies in inventory and
delivery. Operations and warehousing employees will report to coordinators
in each market. Store sales managers will report to marketing managers in
each market. "The retail furniture business is, essentially, a local
business," Mr. Grund said. "This new set-up is designed to give us more
local-market intelligence, and to enable us to make more relevant local
merchandising, promotional and advertising decisions. From a financial
perspective, this streamlined warehouse system will increase inventory
turns, reduce expense and dramatically improve operating efficiency."
Levitz will use the proceeds from the sale of closing stores, warehouses
and associated inventory to significantly reduce debt, refurbish certain
existing stores and open new ones.
The company also announced that Robert Homler, formerly president of
marketing and merchandising, is leaving the company. As a result, Mr.
Grund will assume direct responsibility for marketing and merchandising as
he guides the company on its plan to return to profitability.
Mr. Grund also said the company has designated seven locations as "model"
stores, where new compensation and incentive programs are being tested.
"We are encouraged by the results we have seen to date," he said.
He also described a store in Phoenix that had been relocated and re-
merchandised according to consumer lifestyles, rather than by category.
"So, instead of looking at 20 dining room sets in one area, a shopper
interested in contemporary furniture sees contemporary dining rooms and
bedrooms, as well as the accessories that go with them." He reported that
the store's written volume is three times last year's.
"We believe that the implementation of this strategy is the final major
operational element to enable us to assemble a going-forward business
model, complete the realization of non-strategic real estate values, and,
ultimately, a plan of reorganization for the new Levitz," Mr. Grund said.
NOTE TO MEDIA: A conference call featuring Edward Grund, chairman and CEO
of Levitz Furniture, will take place on Monday, December 21 at 11:00 AM ET.
To participate, call 1-800-334-8329. Mr. Grund will comment on today's
announcement and time will be allotted for a question and answer session.
Disclaimer: This news release contains forward-looking statements as
defined by the Private Securities Litigation Reform Act of 1995. Forward-
looking statements include statements concerning plans, objectives, goals,
strategies, future events or performance, and underlying assumptions and
other statements which are other than statements of historical facts.
These statements are subject to uncertainties and risks, including, but not
limited to, product and service demand and acceptance, changes in
technology, economic conditions, the impact of competition and pricing,
government regulation, and other risks defined in this document and in
statements filed from time to time with the Securities and Exchange
Commission. All such forward-looking statements, whether written or oral,
and whether made by or on behalf of the company, are expressly qualified by
the cautionary statements and other cautionary statements which may
accompany the forward-looking statements. In addition, the companies
disclaim any obligation to update and forward-looking statements to reflect
events or circumstances after the date hereof.
