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: February 17, 1999
(Date of earliest event reported)
<TABLE>
<CAPTION>
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.)
</TABLE>
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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 February 19, 1999, Levitz Furniture Corporation, a Florida
corporation (the "Company"), provided an update to certain of its vendors
with respect to the Chapter 11 proceedings of Levitz Furniture
Incorporated, a Delaware corporation ("LFI"), and each of its debtor
subsidiaries, including the Company. A copy of the letter updating vendors
is attached as an Exhibit hereto and is incorporated by reference herein.
Item 7. Financial Statements and Exhibits.
---------------------------------
(a) Not Applicable
(b) Not Applicable
(c) Exhibits:
99 Letter from Levitz Furniture Corporation to certain of its
vendors, dated February 19, 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: March 1, 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: March 1, 1999
INDEX TO EXHIBITS
Exhibit
Number Exhibit
------- -------
99 Letter from Levitz Furniture Corporation to certain
of its vendors, dated February 19, 1999
EXHIBIT 99
February 19, 1999 Sent via facsimile
[First Name] [Last Name]
[Vendor Name]
[Address]
[City], [State] [Zip]
Dear [First Name]:
We wanted to take this opportunity to update you on various motions
the Company has filed this week with the Bankruptcy Court in Delaware.
Specifically, these motions ask the Court to:
o extend the Company's exclusive right to file a Plan of Reorganization
from March 8th to June 7th and the Company's time to assume or reject
real estate leases to July 7th
o approve the amendment to the DIP financing agreement extending that
agreement from the current March 5th expiration date to a new expiration
date of June 7th
o approve the Company entering into a lease for a new store located in
the Los Angeles area effective March 1st
The hearing with regard to the first two motions is March 2nd while the
motion on the new store lease may be granted as early as February 26th.
You may recall the Company currently has a March 1st deadline for
filing the Plan of Reorganization. On February 17th, the Bankruptcy Court
approved a "bridge order" extending that deadline to March 8th in order to
hear our motion on March 2nd. The Company has had preliminary discussions
with the Creditors' Committee and certain significant holders of unsecured
claims regarding numerous critical plan issues. Those discussions have not,
however, materialized into a final plan because all parties have primarily
focused their attention on financing and a turnaround of the business. We
believe the extension of time will permit the Company to demonstrate the
benefits of recent profit improvement initiatives and facilitate the
negotiation of a consensual reorganization plan. The Creditors' Committee
has advised the Company that they have no objection to the Company's
motion to the Court. If, however, the Court does not grant our motion
to extend exclusivity, we will be prepared to file a plan by March 8th.
During the ninety-day extension of the DIP financing agreement, we
will be taking steps to realize the cash value of the Company's real estate
properties. With regard to our continuing store locations, we are presently
negotiating a sale and leaseback transaction with a party concerning a
majority of our continuing stores. In addition, we are presently
considering offers for the bulk sale of the majority of the properties
associated with the store closing announced in December, 1998. Subject to
satisfactory completion of documentation and due diligence procedures, we
anticipate filing motions within the next 30 to 45 days asking the Court to
approve these transactions. The proceeds from these transactions are
expected to be sufficient to fully repay the $58.3 million term notes and
reduce our ongoing needs for revolver financing to approximately $75
million. The current outstanding indebtedness under the DIP loan is
approximately $150 million. We expect to negotiate a new long-term
financing agreement prior to the June 7th extended maturity date.
The new store will represent our 17th location in the southern
California market. Historically this has been a strong market for the
Company and we believe the new location provides an opportunity to serve a
rapidly growing area while leveraging off the advertising expenditures and
sales support center operations in that market.
We will keep you updated on the results of the hearing on March 2nd.
We thank you for your continued support of the Company in its
reorganization efforts and we look forward to working closely with you in
improving on our mutually beneficial relationship.
Very truly yours,
Edward L. Grund Michael E. McCreery
Chairman & Chief Executive Officer Sr. Vice President/Chief Financial
Officer
# # #
Disclaimer: This communication 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.
