FOR IMMEDIATE RELEASE [CONTACT: Ed Zimmer
---------------------
Levitz Furniture Corporation
(561) 994-5150]
LEVITZ ANNOUNCES ITS INTENT TO PURSUE
A COMBINATION WITH SEAMAN FURNITURE
BOCA RATON, FL, August 10, 2000- Levitz Furniture Corporation today asked
the Bankruptcy Court to dismiss an adversary proceeding which it had filed
in May of this year against certain minority shareholders of Seaman
Furniture Co., Inc. Levitz had filed the action in response to litigation
initiated by those minority shareholders against Seaman and certain other
parties. The minority shareholder litigation sought and obtained an
injunction to prevent Seaman and Levitz from entering into previously
announced agreements to combine certain management and support services
functions. Levitz asked the Bankruptcy Court to dismiss the proceedings
after being told the minority shareholders and parties to their dispute had
reached agreement on the terms of a settlement of the shareholder
litigation pending in the Delaware Court of Chancery. Upon satisfaction and
performance of the conditions to the settlement Levitz and Seaman would be
free to proceed with the negotiation of a transaction to combine operations
that would form the basis for a consensual plan of reorganization of
Levitz. This combination and the plan of reorganization would be subject to
Bankruptcy Court approval, which Levitz anticipates receiving in the latter
part of this year, subject to the negotiation of financing arrangements and
other conditions.
Levitz also announced it has decided to exit the Boston market and plans to
sell or close later this year the four stores that it currently operates in
that market. Levitz will also close single store locations in Reading, PA
and Bakersfield, CA. In addition, Levitz disclosed that it will relocate in
October and November 2000 former warehouse-showrooms in Southington,
Connecticut and Concord, California to new sites featuring the successful
showroom format introduced in its Phoenix, Arizona market.
It is expected that, upon satisfaction of the conditions to the settlement
and confirmation of a plan of reorganization for Levitz, Levitz and Seaman
stores will continue to operate under their existing banners. Levitz
expects that, if an arrangement between Seaman and Levitz is effected as
part of its plan of reorganization, 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 would propose that 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. 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 in Woodbury, New York or to
the new California office.
Levitz Furniture Corporation currently operates 64 stores in 13 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.
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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.
