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: July 7, 1999
(Date of earliest event reported)
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LEVITZ FURNITURE INCORPORATED LEVITZ FURNITURE CORPORATION
(Exact name of registrant as (Exact name of registrant as
specified in its charter) specified in its charter)
<S> <C> <C> <C> <C> <C>
DELAWARE 1-12046 23-2351830 FLORIDA 1-5787 23-1657490
(State or other (Commission (IRS Employer (State or other (Commission (IRS Employer
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 July 7, 1999, Levitz Furniture, Inc., a Delaware
corporation (the "LFI"), issued a press release, a copy of which is
attached as an Exhibit hereto and is incorporated by reference herein,
announcing, among other things, that LFI and each of its debtor
subsidiaries, including Levitz Furniture Corporation, a Florida corporation
(the "Company"), filed a Disclosure Statement and Plan of Reorganization
(the "Plan") with the United States Bankruptcy Court for the District of
Delaware. The Plan provides for the continued existence of LFI and the
Company in the retail home furnishing industry. As part of the Plan,
stockholders will not receive distributions and creditors will receive
stock in a reorganized LFI.
Item 7. Financial Statements and Exhibits.
(a) Not Applicable
(b) Not Applicable
(c) Exhibits:
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99 Press release dated July 7, 1999
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
--------------------------
Edward P. Zimmer
Vice President
Date: July 14, 1999
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: July 14, 1999
INDEX TO EXHIBITS
Exhibit
Number Exhibit
------- --------
99 Press release dated July 7, 1999
EXHIBIT 99
LEVITZ FURNITURE REPORTS ON
PROGRESS TOWARD EMERGENCE FROM
CHAPTER 11 BANKRUPTCY PROTECTION
BOCA RATON, Fla.-- July 7, 1999 -- Levitz Furniture, Inc., a
pioneer in the retail furniture industry, today announced that it has
reached three milestones in the process of emerging from Chapter 11
bankruptcy protection.
First, the company said it has completed a sale-leaseback
transaction that enabled the company to pay down all of its 16% Term Notes,
totaling $58.4 million, under its Debtor-in-Possession (DIP) financing.
This completely eliminated the company's highest-interest debt.
According to Michael E. McCreery, senior vice president and
chief financial officer of Levitz, "This is the first of several
debt-reducing real estate transactions we plan to complete over the coming
months. By leveraging the value of the company's real estate assets to
reduce debt, we intend to reach a point where operational cash flow is more
than sufficient to cover debt service expenses."
Second, following a nationwide review of proposals, the
company announced that it has retained the advertising agency of Harris
Drury Cohen of Fort Lauderdale, FL to handle broadcast and print creative
and assist with the re-launch of the Levitz brand to consumers. Levitz
expects to debut a new creative campaign in the next few months that
establishes a clear image for the pioneering home furnishings brand.
In addition, Levitz said that, in compliance with the
timeline set by the court, it will file a plan of reorganization today in
U.S. Bankruptcy Court for the District of Delaware. The plan provides for
Levitz to continue as a going concern, and the company intends to continue
offering consumers a full line of affordable name-brand home furnishings.
As part of the Plan of Reorganization, stockholders would not receive any
distributions and creditors would receive stock in the reorganized Levitz.
Ed Grund, chairman and chief executive officer of Levitz,
stated: "Each of these transactions is an important event as Levitz
continues to move closer to its eventual emergence from Chapter 11. We are
committed to continuing to work closely with all relevant parties as we
keep the emergence process moving forward."
Grund also reported on several strategic, operational and
marketing initiatives that the company has initiated in the past eight
months, which are designed to streamline day-to-day operations, reduce
overhead and reinvigorate sales. These include:
Focus on strategic markets: The company closed stores in its
lowest-performing markets and is focusing exclusively on its strongest
markets.
Warehouse rationalization: The company has reduced the
number of warehouses by nearly fifty percent and is implementing a new
inventory replenishment system.
Stronger field structure: The company created a
locally-based field management structure designed to be more responsive to
changes in customer tastes and regional trends. Senior-level Market
Managers are now able to spend more time in each store than under the
previous system, while 21 regional sales support centers enable Levitz to
provide better support for in-store sales staff and, in turn, better
service to the customer.
Closer vendor relationships: Following an in-depth review of
its trade relationships, Levitz is working with key vendors to develop
closer relationships and create operational and financial efficiencies.
Development of prototype stores: The company introduced a
new store design concept in the Philadelphia and Phoenix markets and
renovated stores in the Las Vegas, Minneapolis and Los Angeles markets. At
many of the re-designed and re-modeled stores, the company has experienced
same-store sales increases, which have had a "halo effect" on sales in some
markets. Levitz also opened its first new store in more than two years,
located in the rapidly growing Santa Clarita Valley north of Los Angeles.
All of the new, re-designed and renovated stores employ an open layout
based on customer lifestyles, as well as room settings that highlight
locally popular styles.
Grund concluded: "We are 100% focused on improving our
business performance in the second half of the year and continuing to work
with our creditors and the bankruptcy court to advance the Chapter 11
proceedings."
Levitz Furniture, Inc. currently operates 64 stores in 13
states on the East and West Coasts and in the Midwest. For more
information, visit the company's web site at www.levitz.com.
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 any forward-looking statements to reflect
events or circumstances after the date hereof.
CONTACT: David Rosenberg
Bratskeir & Company
(for Levitz Furniture, Inc.)
212-679-2233
