SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1995
-----------------
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
------------- -------------
Commission file number 1-5380
--------------------
FULL TITLE OF THE PLAN:
AMES DEPARTMENT STORES, INC. RETIREMENT AND SAVINGS PLAN
NAME OF THE PLAN'S SPONSOR AND
THE ADDRESS OF ITS PRINCIPAL EXECUTIVE OFFICE
---------------------------------------------
Ames Department Stores, Inc.
2418 Main Street
Rocky Hill, CT 06067
ITEMS TO BE ANSWERED
<PAGE>
Item 1. Changes in the Plan
-------------------
During 1994, the Ames Department Stores, Inc. Retirement and Savings Plan
(the "Plan") was modified to permit the Plan's participants to direct their
funds among four investment options: a fixed income fund managed by American
Express Trust Company (f/k/a IDS Trust Company, and, individually, or in
reference to affiliated companies providing services to the Plan, "American
Express") and three mutual funds managed by American Express. Prior to
1994, Plan participants had no investment options; Plan assets were invested
in one fund consisting primarily of insurance contracts, short-term (pooled)
funds and, beginning in December 1993, certain collective investment funds
managed by American Express.
In addition, the Plan was modified to permit participants, with certain
limitations, to change their investment allocation for future contributions
and to transfer funds between the investment options periodically. In
conjunction with the above modifications, the Plan changed from valuing its
assets monthly to valuing its assets daily. The change in valuation
methodology permits Ames Department Stores, Inc. (the "Company"), the Plan's
sponsor, to respond more timely to participant withdrawals, benefit payments
and loans.
The changes to the Plan were incorporated within an amendment and
restatement of the Plan which was effective as of January 1, 1993. The
amended and restated Plan obtained its latest determination letter on
August 8, 1995, in which the Internal Revenue Service stated that the form of
Plan, as then designed, was in compliance with the applicable requirements of
the Internal Revenue Code.
Item 2. Changes in Investment Policy
----------------------------
Effective April 1, 1994, the Company authorized the following investment
funds under the Plan:
1. The Ames Fixed Income Account (the "Fixed Income
Account") which seeks to earn competitive returns while
minimizing risk to principal by investing primarily in
individual insurance company contracts and certain collective
investment funds managed by American Express
2. IDS Mutual, a mutual fund managed by American Express
which seeks current income and capital growth through
investment in a balanced portfolio of equity securities and
bonds
<PAGE>
3. IDS Stock Fund, a mutual fund managed by American
Express which seeks current income and capital growth
primarily through investment in equity securities
4. IDS New Dimensions, a mutual fund managed by American
Express which seeks long-term growth of capital through
investment in equity securities
In May 1994, Plan participants made their initial investment elections from
among the four funds. Approximately $13.4 million transferred from the Fixed
Income Account to IDS Mutual, IDS Stock Fund and IDS New Dimensions
(collectively, the "Mutual Funds") on July 1, 1994, the effective date of the
initial participant investment elections.
Item 3. Contributions Under the Plan
----------------------------
For each participant's contribution (up to a maximum of 5% of such
participant's total compensation), the Company contributes to the Plan an
amount equal to 50% of such contribution. A participant may contribute to
the Plan from 1% to 18% of annual compensation, as defined, on a pre-tax or
after-tax basis, or a combination of both.
During 1995, the Company contributed $3,068,242 to the Plan.
Item 4. Participating Employees
-----------------------
As of December 31, 1995 approximately 6,200 employees were participating in
the Plan.
Item 5. Administration of the Plan
--------------------------
The Plan is administered by the Policy Committee of Ames Department Stores,
Inc. (the "Committee") which is comprised of three persons who serve at the
sole discretion of the Company's Board of Directors without compensation
from the Plan. The Committee has general authority to control and manage
the operation and administration of the Plan, including authority to appoint
and remove trustees and to adopt rules interpreting or implementing the Plan.
The business address of the Committee members is 2418 Main Street, Rocky
Hill, Connecticut 06067.<PAGE>
Item 6. Custodian of Investments
------------------------
Through March 31, 1994, the funds of the Plan were held by:
State Street Bank and Trust Company
P.O. Box 1389
Boston, Massachusetts 02104
After March 31, 1994, the funds of the Plan were held by:
American Express Trust Company
1200 Northstar West
P.O. Box 928
Minneapolis, Minnesota 55440-0534
All fees, commissions and other charges assessed by the custodians are paid
by the Company. All investment management fees are paid by the Plan, except
for certain investment management fees during the period January 1992 through
March 1994, which were paid by the Company.
Item 7. Reports to Participating Employees
----------------------------------
All participating employees received quarterly statements reflecting the
status of their individual accounts during 1995.
Item 8. Investment of Funds
-------------------
Effective April 1, 1994, the Company established the Ames Department
Stores, Inc. Retirement Plans Pooled Investment Trust (the "Pooled Investment
Trust") to permit the commingling of assets from its two retirement plans
within the Fixed Income Account and thereby allow the plans to earn the same
rate of return on assets invested in the Fixed Income Account. Effective on
that same date, substantially all of the assets of the Plan were transferred
from the Ames Department Stores, Inc. Master Trust (the "Master Trust") to
the Fixed Income Account, leaving only those assets related to the contracts
originally purchased from Executive Life Insurance Company remaining within
the Master Trust. In July 1994, approximately $13.4 million was transferred
from the Fixed Income Account to the Mutual Funds pursuant to the initial
investment elections by Plan participants.
<PAGE>
Item 9. Financial Statements and Exhibits
---------------------------------
(a) Financial Statements of Ames Department Stores, Inc.
Retirement and Savings Plan
Report of Independent Public Accountants 6
Financial Statements:
Statements of Net Assets Available for Plan Benefits 7
as of December 31, 1995 and 1994
Statement of Changes in Net Assets Available for Plan 8
Benefits for the Year Ended December 31, 1995
Statement of Changes in Net Assets Available for
Plan Benefits for the Year Ended December 31, 1994 9
Statement of Changes in Net Assets Available for
Plan Benefits for the Year Ended December 31, 1993 10
Notes to Financial Statements 11
Schedules:
Item 27a - Schedule of Assets Held for Investment
Purposes as of December 31, 1995 and
December 31, 1994 19
Item 27d - Schedule of Reportable Transactions
for the Year Ended December 31, 1995 20
(b) Exhibits - None
<PAGE>
SIGNATURES
----------
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Policy Committee of Ames Department Stores, Inc. has duly caused this
annual report to be signed on its behalf by the undersigned thereunto duly
authorized.
Dated: June 25, 1996
/s/ Joseph R. Ettore
----------------------------------
Joseph R. Ettore
President, Chief Executive Officer
Ames Department Stores, Inc.
Dated: June 25, 1996
/s/ John F. Burtelow
---------------------------------
John F. Burtelow
Executive Vice President
Chief Financial Officer
Ames Department Stores, Inc.
Dated: June 25, 1996
/s/ William C. Najdecki
---------------------------------
William C. Najdecki
Senior Vice President - Finance
Ames Department Stores, Inc.
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Plan Administrator of Ames Department Stores, Inc.
Retirement and Savings Plan:
We have audited the accompanying statements of net assets available for plan
benefits of Ames Department Stores, Inc. Retirement and Savings Plan (the
"Plan") as of December 31, 1995 and 1994, and the related statements of
changes in net assets available for plan benefits for the years ended
December 31, 1995, December 31, 1994 and December 31, 1993. These financial
statements and the schedules referred to below are the responsibility of the
Plan's management. Our responsibility is to express an opinion on these
financial statements and schedules based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for plan benefits of the Plan
as of December 31, 1995 and 1994, and the changes in its net assets available
for plan benefits for the years ended December 31, 1995, December 31, 1994
and December 31, 1993 in conformity with generally accepted accounting
principles.
<PAGE>
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules of assets
held for investment purposes and reportable transactions are presented for
the purpose of additional analysis and are not a required part of the basic
financial statements but are supplementary information required by the
Department of Labor's Rules and Regulations for Reporting and Disclosure
under the Employee Retirement Income Security Act of 1974. The fund
information in the statement of net assets available for plan benefits and
the statement of changes in net assets available for plan benefits are
presented for purposes of additional analysis rather than to present the net
assets available for plan benefits and changes in net assets available for
plan benefits of each fund. The supplemental schedules and fund information
have been subjected to the auditing procedures applied in the audits of the
basic financial statements and, in our opinion, are fairly stated in all
material respects in relation to the basic financial statements taken as
a whole.
ARTHUR ANDERSEN LLP
New York, New York
June 19, 1996<PAGE>
<PAGE>
<TABLE>
Ames Department Stores, Inc. Retirement and Savings Plan
Statements of Net Assets Available for Plan Benefits
As of December 31, 1995 and 1994
<CAPTION>
1995 1994
------------ ------------
<S> <C> <C>
Contribution receivable
Employee $296,382 $314,664
Employer 104,540 110,720
Employee promissory notes 2,452,095 1,928,351
Investments
IDS Mutual Fund 8,930,279 6,448,107
IDS Stock Fund 6,345,789 4,329,543
IDS New Dimensions 8,153,670 4,992,639
Investment in Master Trust 468,314 852,810
Investment in Pooled Investment Trust 39,233,737 36,123,360
------------ ------------
Total investments 63,131,789 52,746,459
------------ ------------
Net assets available for plan benefits $65,984,806 $55,100,194
============ ============
<FN>
The accompanying notes and schedules are an integral part of these financial
statements
</TABLE>
<PAGE>
<PAGE>
<TABLE>
Ames Department Stores, Inc. Retirement and Savings Plan
Statement of Changes in Net Assets Available for Plan Benefits
For the Year Ended December 31, 1995
<CAPTION>
State Street
Bank and
Trust Co American Express Trust Company
------------ --------------------------------------------------------
General Fixed IDS New Promissory Total
Account Income IDS Mutual IDS Stock Dimensions Notes Other Plan Assets
------------ -------------------------------------------------------- --------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment Income
Dividends - - $425,944 $334,473 $347,681 - - $1,108,098
Pooled Investment Trust
Interest on collective
funds - 2,099,825 - - - - - 2,099,825
Interest on guaranteed
investment contracts - 530,773 - - - - - 530,773
Administrative expenses - (82,552) - - - - - (82,552)
------------ -------------------------------------------------------- --------- ------------
Net investment income - 2,548,046 425,944 334,473 347,681 - - 3,656,144
Net appreciation in fair
value of investments - 194,825 1,257,619 862,550 1,590,201 - - 3,905,195
Interest income
on employee loans - - - - - 196,444 - 196,444
Contributions
Employee - 4,456,950 1,282,746 1,045,619 1,270,048 - (18,282) 8,037,081
Employer - 1,704,614 473,443 377,288 519,077 - (6,180) 3,068,242
Participant withdrawals
and benefit payments (186,700) (5,464,764) (798,445) (580,331) (765,989) (182,265) - (7,978,494)
Transfers between
associated accounts (197,796) (329,294) (159,135) (23,353) 200,013 509,565 - -
------------ -------------------------------------------------------- --------- ------------
Net increase (decrease)
in net assets available
for plan benefits (384,496) 3,110,377 2,482,172 2,016,246 3,161,031 523,744 (24,462) 10,884,612
Net assets available
for plan benefits,
beginning of year 852,810 $36,123,360 $6,448,107 $4,329,543 $4,992,639 $1,928,351 $425,384 55,100,194
------------ -------------------------------------------------------- --------- ------------
Net assets available
for plan benefits,
end of year $468,314 $39,233,737 $8,930,279 $6,345,789 $8,153,670 $2,452,095 $400,922 $65,984,806
============ ================================================================= ============
<FN>
The accompanying notes and schedules are an integral part of these financial statements.
</TABLE>
<PAGE>
<PAGE>
<TABLE>
Ames Department Stores, Inc. Retirement and Savings Plan
Statement of Changes in Net Assets Available for Plan Benefits
For the Year Ended December 31, 1994
<CAPTION>
State Street Bank
and Trust Company American Express Trust Company
----------------------- --------------------------------------------------------
General Promissory Fixed IDS New Promissory Total
Account Notes Income IDS Mutual IDS Stock Dimensions Notes Other Plan Assets
----------------------- -------------------------------------------------------- --------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Investment Income
Dividends - - - $500,357 $446,584 $223,578 - - $1,170,519
Master Trust $719,968 - - - - - - - 719,968
Pooled Investment Trust
Interest on collective
funds - - 1,209,668 - - - - - 1,209,668
Interest on guaranteed
investment contracts - - 667,768 - - - - - 667,768
Administrative expenses (33,060) - (52,282) - - - - - (85,342)
----------------------- -------------------------------------------------------- --------- ------------
Net investment income 686,908 - 1,825,154 500,357 446,584 223,578 - - 3,682,581
Net depreciation in fair
value of investments (125,017) - (168,424) (523,784) (443,884) (95,288) - - (1,356,397)
Transfer of assets from (to)
Zayre Stores Retirement
and Savings Plan (49,427) - 11,914 - - - - - (37,513)
Interest income
on employee loans - 14,050 - - - - 87,352 - 101,402
Contributions
Employee 1,152,341 - 4,111,407 666,534 518,626 633,818 - 314,664 7,397,390
Employer 513,500 - 1,523,968 251,039 214,025 247,652 - 110,720 2,860,904
Participant withdrawals
and benefit payments (3,474,687) (219,356) (5,151,047) (254,972) (165,996) (257,380) (186,499) - (9,709,937)
Transfer from
prior trustee (47,397,795)(1,337,093) 47,397,795 - - - 1,337,093 - -
Transfers between
associated accounts (1,057,314) (15,064) (13,427,407) 5,808,933 3,760,188 4,240,259 690,405 - -
----------------------- -------------------------------------------------------- --------- ------------
Net increase (decrease)
in net assets available
for plan benefits (49,751,491)(1,557,463) 36,123,360 6,448,107 4,329,543 4,992,639 1,928,351 425,384 2,938,430
Net assets available
for plan benefits,
beginning of year 50,604,301 1,557,463 - - - - - - 52,161,764
----------------------- -------------------------------------------------------- --------- ------------
Net assets available
for plan benefits,
end of year $852,810 - $36,123,360 $6,448,107 $4,329,543 $4,992,639 $1,928,351 $425,384 $55,100,194
======================= ======================================================== ========= ============
<FN>
The accompanying notes and schedules are an integral part of these financial statements.
</TABLE>
<PAGE>
<PAGE>
<TABLE>
Ames Department Stores, Inc. Retirement and Savings Plan
Statements of Changes in Net Assets Available for Plan Benefits
For the Year Ended December 31, 1993
<CAPTION>
1993
------------
<S> <C>
Investment income
Interest $104,707
Pooled income
Master Trust 2,266,209
Other 137,497
Administrative expense -
------------
Net investment income 2,508,413
Realized losses -
Provision for Executive Life (Note 5) (65,779)
Net depreciation in fair value
of investments (5,288)
Transfer of assets from Zayre Stores
Retirement and Savings Plan -
Interest income on employee loans 113,610
Contributions
Employee 5,947,377
Employer 2,236,848
Participant withdrawals and benefit
payments (11,674,443)
------------
Net decrease in net assets available
for plan benefits (939,262)
Net assets available for plan benefits,
beginning of year 53,101,026
------------
Net assets available for plan benefits,
end of year $52,161,764
============
<FN>
The accompanying notes and schedules are an integral part of these
financial statements.
</TABLE>
<PAGE>
Ames Department Stores, Inc. Retirement and Savings Plan
Notes to Financial Statements
December 31, 1995
1. Plan Description
----------------
The following description of the Ames Department Stores, Inc. Retirement
and Savings Plan (the "Plan") is provided for general information
purposes only. More complete information regarding the Plan's provisions
may be found in the Plan document.
General
The Plan is a defined contribution plan for the benefit of eligible
employees of Ames Department Stores, Inc. (the "Company"). All non-
union employees of the Company who have attained the age of 21 and
have completed one year of service, as defined, are automatically eligible
to participate. The Plan is subject to the applicable provisions of the
Employee Retirement Income Security Act of 1974, as amended
("ERISA").
Plan Administration
Under a trust agreement effective as of April 1, 1994, American Express
Trust Company (f/k/a IDS Trust Company, and, individually, or in
reference to affiliated companies providing services to the Plan,
"American Express") was appointed trustee for substantially all of the
Plan assets. State Street Bank and Trust Company ("State Street"), the
trustee for the Plan assets prior to April 1, 1994, remains trustee only
for the assets related to the contracts originally purchased on behalf of
the Plan from Executive Life Insurance Company (See Note 5).
The Plan is administered by the Policy Committee of Ames Department
Stores, Inc. (the "Committee") which is comprised of three persons who
serve at the sole discretion of the Company's Board of Directors without
compensation from the Plan. The Committee has general authority to
control and manage the operation and administration of the Plan,
including authority to appoint and remove trustees and to adopt rules
interpreting or implementing the Plan.
<PAGE>
Contributions
Participants may contribute to the Plan from 1% to 18% of their annual
compensation on a pre-tax or after-tax basis, or a combination of both.
For each participant's contribution, up to a maximum of 5% of such
participant's annual compensation, as defined, the Company will
contribute an amount equal to 50% of such contribution.
Company contributions, participants' pre-tax contributions and the
investment income related to all contributions are excluded from the
participants' income for federal income tax purposes until such amounts
are withdrawn or distributed. Under the Tax Reform Act of 1986,
participants were limited to 1995 pre-tax contributions of $9,240. This
limit is subject to adjustment due to inflation in each plan year.
Participant Accounts
Each participant's account is credited with (a) the participant's
contribution, (b) the Company's pro rata contribution, which includes
forfeitures of terminated participants' nonvested accounts and (c) an
allocation of plan earnings, net of investment management fees.
Allocations are based on participant earnings or account balances, as
defined in the Plan. The benefit to which a participant is entitled is
the vested portion of the benefit that can be provided from the
participant's account.
Vesting
Employee contributions are 100% vested in the Plan. One-half of
Company contributions are vested immediately and the remainder are
vested in increasing percentages until fully vested after five years of
service. Vesting refers to benefits to which participants are entitled
regardless of future service with the Company.
Payment of Benefits
The Plan provides for lump-sum withdrawal of employee benefits upon
termination of employment, disability or death. Benefits are payable
upon the request of a participant after separation of employment, but
no later than age 70 1/2. In addition, hardship withdrawals are permitted
if certain criteria are met.
<PAGE>
Loan Provision
Participants who are active employees may borrow up to 50% of their
vested account balance with a minimum loan amount of $500 and a
maximum of $50,000 or limits prescribed by the Internal Revenue Service
("IRS"). The loans must be repaid through weekly payroll deductions
over a period not to exceed three years at an interest rate that is 2%
above the prime rate. Participants may prepay the entire unpaid balance
at any time without penalty.
2. Summary of Significant Accounting Policies
------------------------------------------
Basis of Accounting
The Plan's financial statements are presented on the accrual basis of
accounting in accordance with generally accepted accounting principles.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities
and disclosures of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those
estimates.
Contributions receivable represent the retirement and savings contribution
due from the Company for amounts contributed by employees and the
Company's matching contribution during the periods presented but not yet
received by the Plan as of the end of the periods presented. In 1995 and
1994, the contributions receivable balance represents contributions from
the last two weeks of December.
<PAGE>
Valuation of Investments
The principal Plan assets and their valuation basis are as follows:
Short-Term (Pooled) Funds - at market value of underlying
securities as determined by trustee
American Express Collective Investment Funds - at market value
of underlying securities as determined by American Express
American Express Mutual Funds - at market value of underlying
securities as determined by American Express
Guaranteed Investment Contracts ("GICs") issued by insurance
companies - at contract value
Although GICs are carried at contract value, the election of a
lump sum withdrawal prior to the maturity of the contract will
result in a market value adjustment.
The assets related to the contracts originally purchased from Executive
Life Insurance Company have been adjusted to the Company's best
estimate of the realizable value of these assets. See Note 5 for further
discussion.
Net Appreciation/Depreciation in Fair Value of Investments
Net realized and unrealized appreciation/depreciation is recorded in the
accompanying statements of changes in net assets as net
appreciation/depreciation in fair value of investments.
Administrative Expenses
The Company pays all administrative, recordkeeping and trust fees for the
Plan, except those fees related to processing of loans and withdrawals.
The Plan pays all investment management fees. During the period
January 1992 through March 1994, the Company paid for certain
investment management fees.
Other
Certain 1994 amounts have been reclassified to conform with 1995
presentation.
Withdrawal and benefit payments authorized prior to year-end but
distributed subsequent to year-end were $170,766, $307,238 and
$1,186,059 for 1995, 1994 and 1993, respectively.
<PAGE>
3. Tax Status
----------
The Plan obtained its latest determination letter on August 8, 1995, in
which the IRS stated that the form of the Plan, as then designed, was in
compliance with the applicable requirements of the Internal Revenue Code.
The Committee believes that the Plan was qualified under the Internal
Revenue Code as exempt from federal income taxes as of the financial
statement dates.
4. Plan Termination
-----------------
The Company expects to continue the Plan, but retains the right at any
time to terminate it. Upon any termination or partial termination of the
Plan or the complete discontinuance of contributions thereunder, the
interest of each affected participant in his or her account at the date of
such termination, partial termination or discontinuance shall be
nonforfeitable and all unallocated contributions and forfeitures shall
become nonforfeitable.
5. Investment in Executive Life Insurance Company Contracts
--------------------------------------------------------
At the time that Executive Life Insurance Company ("ELIC") was seized
by insurance regulators in April, 1991, the Plan had an interest totaling
$3,288,951, at cost, in four ELIC contracts. Income and withdrawal
payments from all ELIC contracts were suspended as a result of the
seizure. Interest ceased being accrued on the Plan's ELIC contracts at
that time.
For the year ended December 31, 1992, the Plan recorded an adjustment
of $460,453, or 14% of the original cost, for an estimated loss on these
contracts based upon the ELIC rehabilitation plan as proposed. At that
time, the rehabilitation plan was being considered by the California
courts. In August of 1993, a modified plan of rehabilitation was approved
by the California courts and, although subject to a number of legal
challenges, began to be implemented in September, 1993. For the year
ended December 31, 1993, an additional adjustment of $65,779, or 2% of
the original cost, was recorded to reduce the investment to its estimated
fair value, based on the modified plan, of 84% of original cost.
<PAGE>
In February 1994, Fiduciary Capital Management ("FCM"), the Plan's
investment manager at the time, directed the holder of the Plan's ELIC
contracts, State Street, to opt-out of the ELIC plan of rehabilitation.
Accordingly, the Plan has received certain opt-out payments and is
entitled to certain cash distributions from the opt-out trust created
under the ELIC plan of rehabilitation ("ELIC Opt-out Distribution Rights").
It is expected that cash distributions from the opt-out trust will be
received by the Plan through 1998.
As of December 31, 1995, the Plan had received in cash approximately
$2.7 million from ELIC and the opt-out trust, including interest earned on
cash distributions held by the Plan prior to distribution to participants.
6. Master Trust Allocation
-----------------------
In January 1993, the Company established the Ames Department Stores,
Inc. Master Trust (the "Master Trust") to permit the commingling of
assets from its two retirement plans and thereby allow the assets to earn
the same rate of interest on the invested assets.
The Plan's interest in the assets of the Master Trust is included in the
accompanying statement of net assets available for plan benefits. A
summary of the assets of the Master Trust as of December 31, 1995 and
as of December 31, 1994 is as follows:
<TABLE>
<CAPTION>
1995 1994
Cost Fair Value Cost Fair Value
-------- ---------- -------- ----------
<S> <C> <C> <C> <C>
Cash $431,637 $431,637 $8,773 $8,773
ELIC Opt-out Distribution Rights (Note 5) 47,840 47,840 865,458 865,458
-------- -------- -------- --------
Total Master Trust assets $479,477 $479,477 $874,231 $874,231
======== ======== ======== ========
/TABLE
<PAGE>
Allocations of the fair value of the assets of the Master Trust to
participating plans as of December 31, 1995 and as of December 31, 1994
are as follows:
<TABLE>
<CAPTION>
1995 1994
Amount Percent Amount Percent
--------- --------- --------- -------
<S> <C> <C> <C> <C>
Ames Department Stores, Inc.
Retirement and Savings Plan $468,314 97.67% $852,810 97.55%
Zayre Stores Retirement and
Savings Plan 4,134 0.86 8,553 0.98
Ames Collective Bargaining Unit Retirement
and Savings Plan - Fredericksburg 7,029 1.47 12,868 1.47
-------- ------- -------- -----
$479,477 100.00% $874,231 100.00%
======== ======= ======== ======
</TABLE>
Master Trust income allocated to the participating plans for the year
ended December 31, 1994 is as follows:
1994
--------
Interest income $21,155
Income on collective funds 407,585
Income on guaranteed investment contracts 304,662
--------
$733,402
========
The Master Trust income for the year ended December 31, 1994,
reflects the activity for the three months ended March 31, 1994, prior
to the transfer of substantially all of the Plan assets from State
Street to American Express. There was no Master Trust income allocated
to the participating plans for the year ended December 31, 1995.
<PAGE>
7. Pooled Investment Trust Allocation
----------------------------------
Effective April 1, 1994, as part of the transition to American Express as
the full service provider to the Plan and the introduction of multiple
investment options to Plan participants, the Company established the
Ames Department Stores, Inc. Retirement Plans Pooled Investment Trust
(the "Pooled Investment Trust") to permit the commingling of certain
assets from its two retirement plans and thereby allow the plans to earn
the same rate of return of those assets.
The Plan's interest in the assets of the Pooled Investment Trust is
included in the accompanying statement of net assets available for plan
benefits as of December 31, 1995 and December 31, 1994. A summary
of the assets of the Pooled Investment Trust as of December 31, 1995 and
December 31, 1994 is as follows:
<TABLE>
<CAPTION>
1995 1994
Cost Fair Value Cost Fair Value
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
American Express collective funds
Income Fund $16,495,447 $17,277,661 $13,390,691 $13,336,068
Stable Capital Fund 11,418,463 12,112,494 9,330,270 9,313,525
Federal Income Fund 4,728,277 5,202,530 4,147,337 3,989,787
Guaranteed investment contracts (a)
Principal Mutual Life GIC GA-15646 2,525,347 2,525,347 2,327,311 2,327,311
Prudential Life Ins Co GIC GA-6985 938,651 938,651 2,900,000 2,900,000
Peoples Security Life Ins Co GIC #BDA00297FR --- --- 2,709,583 2,709,583
AIG Funding Insurance Company GIC #870A 834,665 834,665 843,294 843,294
Protective Life Ins Co. GIC GA-678-A 1,250,000 1,250,000 1,250,000 1,250,000
Peoples Security Life Ins Co GIC #BDA00298FR --- --- 34,930 34,930
AIG Funding Insurance Company GIC #87OZ 16,753 16,753 16,753 16,753
Protective Life Ins Co GIC GA-678-B 25,000 25,000 25,000 25,000
Interest receivable 212,389 212,389 452,840 452,840
----------- ----------- ----------- -----------
Total Pooled Investment Trust assets $38,444,992 $40,395,490 $37,428,009 $37,199,091
=========== =========== =========== ===========
<FN>
(a) For guaranteed investment contracts, fair value approximates contract value
</TABLE>
<PAGE>
Allocations of the fair value of the assets of the Pooled Investment Trust
to participating plans as of December 31, 1995 and December 31, 1994 is as
follows:
<TABLE>
<CAPTION>
1995 1994
Amount Percent Amount Percent
------------ --------- ----------- --------
<S> <C> <C> <C> <C>
Ames Department Stores, Inc.
Retirement and Savings Plan $39,233,737 97.12% $36,123,360 97.11%
Zayre Stores Retirement and
Savings Plan 1,161,753 2.88 1,075,731 2.89
----------- ------- ----------- -------
$40,395,490 100.00% $37,199,091 100.00%
=========== ======= =========== =======
</TABLE>
8. Related - Party Transactions
-----------------------------------
Substantially all of the Plan assets are managed by American Express
Financial Corporation or American Express Trust Company, a
subsidiary of American Express Financial Corporation. American
Express Trust Company is the trustee as defined by the Plan and,
therefore, the investment transactions qualify as party-in-interest.
<PAGE>
<PAGE>
<TABLE>
Schedule I
Employee number 04-22694444
Plan number 003
Ames Department Stores, Inc. Retirement and Savings Plan
Item 27a - Schedule of Assets held for Investment Purposes
As of December 31, 1995
<CAPTION>
1995
---------------------------
Cost Fair Value
------------ ------------
<S> <C> <C>
IDS Mutual Fund (681,769 shares) $8,185,908 $8,930,279
IDS Stock Fund (312,795 shares) 5,927,126 6,345,789
IDS New Dimensions (452,273 shares) 6,423,247 8,153,670
------------ ------------
20,536,281 23,429,738
Investment in Pooled Investment Trust
(3,500,429 shares) 35,468,571 39,233,737
Investment in Master Trust (a) 468,314 468,314
------------ ------------
Total Investments $56,473,166 $63,131,789
============ ============
Employee Promissory Notes $2,452,095 $2,452,095
============ ============
<FN>
(a) Consists only of cash and ELIC Opt-out Distribution Rights; see Note 5.
/TABLE
<PAGE>
<PAGE>
<TABLE>
Schedule II
Employee number 04-2269444
Plan number 003
Ames Department Stores, Inc. Retirement and Savings Plan
Item 27d - Schedule of Reportable Transactions
For the Year Ended December 31, 1995
<CAPTION>
Purchases Sales
--------------------- --------------------------------------------
Number Purchase Number Selling Cost of Net Gain
Description of Price of Price Assets (Loss)
Identity of Party Involved of Asset Transactions (000s) Transactions (000s) (000s) (000s)
- -------------------------- ---------------- ------------ ------- ------------ --------- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
*Ames Fixed Income Account Fixed Income Fund 89 5,681.5 88 5,308.2 4,931.2 376.9
<FN>
* Denotes party-in-interest
/TABLE
<PAGE>
