PRESS RELEASE CONTACT: EDWARD ZIMMER
LEVITZ FURNITURE CORPORATION
(561) 994-5150
LEVITZ ANNOUNCES FILING OF PLAN OF REORGANIZATION AND
TIMETABLE FOR EMERGENCE FROM CHAPTER 11
BOCA RATON, FL - OCTOBER 16, 2000 - Levitz Furniture Corporation announced
today that it has filed an amended plan of reorganization and disclosure
statement with the Bankruptcy Court, important steps in Levitz's emergence
from its Chapter 11 proceeding. As previously announced in August of this
year, the amended plan of reorganization contemplates the formation of a
holding company, Levitz Home Furnishings, Inc., which would own and
separately operate Levitz and, subject to satisfaction of certain
conditions, Seaman Furniture Company. The plan is supported by Levitz's
Creditors Committee and two of its largest creditors, Resurgence Asset
Management L.L.C. and Cerberus Capital Management, L.P.
The Bankruptcy Court set October 31 as the hearing date on the disclosure
statement and December 8 as the hearing date on the confirmation of the
plan. Assuming Court approvals and the satisfaction of conditions to the
plan, including financing, Levitz would emerge from bankruptcy by the end
of December.
As previously announced, upon confirmation of the plan of reorganization
Levitz and Seaman stores will continue to operate under their existing
banners. The plan of reorganization provides for an operating structure
whereby Ed Grund, Chief Executive Officer of Levitz, would direct all
aspects of operations for the 43 stores on the West Coast and
Minneapolis/St. Paul from a new Regional Headquarters to be located in
Pleasanton, California and Alan Rosenberg, Chief Executive Officer of
Seaman, would continue to direct the 51 Seaman stores while adding
responsibility for directing all aspects of the operations of the 15 Levitz
stores that will continue to operate on the East Coast. In addition, the
East Coast office will be responsible for all administrative and corporate
functions as well as for the selection of a core merchandise mix for all
Levitz stores. Levitz expects that its administrative offices in Boca
Raton, Florida and Pottstown, Pennsylvania would be phased out following
approval of the Levitz plan of reorganization with some personnel from
those offices possibly transferring to Seaman's headquarters on Long
Island, New York or to the new California office.
Levitz Furniture Corporation currently operates 58 stores in 11 states on
the East Coast, West coast, and in the Midwest. To find the nearest store,
call toll free at 1-888-800-2000. Or 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 and forward-looking statements to
reflect events or circumstances after the date hereof.
