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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): June 3, 1996
MELVILLE CORPORATION
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(Exact Name of Registrant as Specified in its Charter)
New York 1-1011 04-1611460
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(State or Other (Commission File Number) (IRS Employer
Jurisdiction Identification
of Incorporation) No.)
One Theall Road
Rye, New York 10580
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(Address of Principal (Zip Code)
Executive Offices)
Registrant's telephone number, including area code:
(914) 925-4000
Not Applicable
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(Former Name or Former Address, if Changed Since Last Report)
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ITEM 5. Other Events.
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Melville Corporation issued a press release on June 3, 1996
announcing further actions relating to its strategic restructuring program.
The information contained in the press release is incorporated herein by
reference. The press release is attached hereto as Exhibit 99.1.
ITEM 7(c). Exhibits.
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Exhibit 99.1 Press Release of Melville Corporation
dated June 3, 1996.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
MELVILLE CORPORATION
/s/ Carlos Alberini
Dated: June 7, 1996 By:_______________________
Name: Carlos Alberini
Title: Chief Financial Officer
INDEX TO EXHIBITS
Sequential
Exhibit No. Description Page No.
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Exhibit 99.1 Press Release of Melville
Corporation dated June 3,
1996.
Exhibit 99.1
Investor Contact: Nancy Christal Media Contact: Wendi Kopsick
Vice President Jim Fingeroth
Investor Relations Kekst and Company
(914) 925-4385 (212) 593-2655
FOR IMMEDIATE RELEASE
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MELVILLE TAKES STEPS TO ACCELERATE COMPLETION OF RESTRUCTURING
AND EXPEDITE CVS AS A STAND-ALONE CHAIN DRUG COMPANY
-- Footstar Earnings Expected to Benefit from Thom McAn Closings --
RYE, NEW YORK, June 3, 1996 -- Melville Corporation (NYSE: MES) today
announced steps to accelerate the emergence of CVS Corporation as a
stand-alone chain drug retailing company and to further strengthen Footstar,
Inc., a new company consisting of Melville's footwear businesses that is to
be spun off to shareholders. The actions clear the way for final
completion of Melville's strategic restructuring program this summer.
These actions include: (1) classifying Linens 'n Things and Bob's results as
discontinued operations, demonstrating the company's formal plan to separate
these divisions from CVS Corporation; (2) a formal plan to convert 80 to 100
of Thom McAn's stores to the highly successful Footaction format and to exit
the Thom McAn business by mid-1997. Primarily as a result of these actions,
the company will record a one-time, after-tax charge of approximately $148
million in the second quarter of 1996.
Melville also reported that it plans to monetize the TJX Companies, Inc.
preferred stock it received as part of the sale of its Marshalls division to
TJX in November 1995. The monetization of these securities is expected to
occur in the third quarter of 1996. Based on the closing price on May 31,
1996 of TJX common stock, into which the preferred stock is convertible, this
would result in a pretax gain of approximately $150 million.
"These steps will expedite the completion of our restructuring program," said
Stanley Goldstein, Chairman and Chief Executive Officer. "With Linens 'n
Things and Bob's now classified as discontinued operations, investors will be
better able to analyze CVS as a stand-alone chain drug retailer. In
addition, exiting the Thom McAn business and the conversion of some of its
very desirable real estate to the Footaction format is expected to produce
annual earnings improvements for Footstar, Inc.
"These actions follow the sales of Wilsons, in late May, and This End Up,
announced earlier today, as well as those of Kay-Bee Toys, completed in early
May, and Marshalls, completed last November. We are on schedule to complete
the spinoff of Footstar in July, and, with the actions announced today, will
have substantially completed Melville's restructuring at that time," Mr.
Goldstein said.
Since October 1995, Melville has been implementing a strategic restructuring
program, which was the product of a strategic review initiated in 1994. The
main components of the restructuring include the creation of two
publicly-traded, independent and industry- focused companies -- CVS
Corporation in the chain drug industry and Footstar, Inc. in the footwear
industry -- a significant reduction in costs, the sale of Melville's mature or
unrelated businesses, and the closing of approximately 330 underperforming
stores.
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