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) :February 16, 1995
Stuarts Department Stores, Inc.
(Exact name of registrant as specified in its charter)
Delaware 0-13184 04-2817110
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Id No.)
16 Forge Parkway, Franklin, Massachusetts 02038
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (508) 520-4540
N/A
(Former name or former address, if changed since last report)
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Item 5. Other Events.
On February 16, 1995, Stuarts Department Stores, Inc. issued a press release
(the "Press Release"),a copy of which is annexed hereto as Exhibit 28-1 and
incorporated herein by reference. There can be no assurance as to whether
the Company's downsizing or efforts to amend financial covenants referred to
in the Press Release will be successful.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
(c) Exhibits
The following Exhibit is filed herewith:
Exhibit
28-1 Press Release dated February 16, 1995.
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SIGNATURE
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 thereunto duly authorized.
STUARTS DEPARTMENT STORES, INC.
DATED :February 16, 1995 by: /s/ Antone F. Moreira
Antone F. Moreira
Executive Vice President
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EXHIBIT INDEX
Exhibit
Number Exhibit Location
28-1 Press release dated February 16, 1995 Page 5
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STUARTS ANNOUNCES STORE CLOSINGS
Company Estimates Significant
Loss for Fiscal 1995
FRANKLIN, MASS., February 16, 1995 -- Stuarts Department
Stores, Inc. (NASDAQ-STUS) reported today that its Board of
Directors had determined to downsize the company by closing six
of its full-line department stores and its three "Stuarts too"
stores during March 1995. The store closing plan is designed to
improve the Company's liquidity. The downsizing which would
reduce the retail chain to 11 stores, is to be undertaken as
part of a previously announced program to review the Company's
operations and to implement operational changes and cost
reductions. The Company stated that its Board had also decided
to explore opportunities for the sale of the remaining retail
chain.
The Company went on to report that, based upon its
preliminary review of financial results for its fiscal year
ended January 28, 1995, it presently estimates that it will
report an operating loss for fiscal 1995 in excess of $10.5
million. The Company noted that this is an estimate based only
upon a preliminary review subject to a final audit and that its
audited financial results could vary materially from these
estimates. The Company stated that its net loss for fiscal 1995
is likely to exceed significantly the operating loss because of,
among other things, reserves for actual and planned store
closings and other restructuring charges.
The Company stated that the reported downsizing is being
effected in response to its liquidity difficulties and
tightening vendor credit, which have been exacerbated by
aggressive January clearance promotions that lowered inventory
levels, thereby reducing the Company's total borrowing
capabilities under its working capital credit facility. The
downsizing is intended to permit the Company to spread its
working capital borrowing capacity over a smaller number of
stores while it moves to implement material reductions in
overhead expenses.
As the Company reported earlier this year, it has received
a temporary waiver through April 30, 1995 of certain covenants
on its line of credit from its working capital lender. The
Company intends to seek from its lender an adjustment of its
financial covenants applicable to periods on and after April 30,
1995.
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The Company, as it effects the reported downsizing, will
continue to consider all appropriate alternatives.
# # # #
For further information, contact:
Mr. David Ferguson, President
(508) 520-4540 ext. 224
or
Mr. Antone Moreira, Executive V.P. and CFO
(508) 520-4540 ext. 222
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