SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Form 8-K/A
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) :May 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 May 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.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
(c) Exhibits
The following Exhibit is filed herewith:
Exhibit
28-1 Press Release dated May 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 :May 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 May 16, 1995 Page 5
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STUARTS FILES CHAPTER 11 PETITION
FRANKLIN, MASS., May 16, 1995 -- Stuarts Department Stores,
Inc. (NASDAQ - STUS) announced today that it had filed a
voluntary petition for reorganization under Chapter 11, Title 11
of the United States Code with the United States Bankruptcy
Court for the District of Massachusetts (Western Division) in
Worcester, Massachusetts. The Company stated that, as
previously announced, it continued to experience extreme
financial and liquidity difficulties and that its efforts to
sell the retail chain had been unsuccessful. The Company stated
that those continued financial and liquidity difficulties
precipitated the Chapter 11 filing.
Stuarts stated that, in connection with the Chapter 11
filing, it had entered into debtor-in-possession financing
arrangements with its lender, Foothill Capital Corporation, for
a $6 million credit facility to finance the Company's working
capital requirements while the reorganization proceedings are
pending. The credit facility will be collateralized by
substantially all of the Company's assets. Borrowings under the
facility will be subject to availability under a borrowing base
formula and to compliance with covenants and business plans. In
addition, the Company has obtained the consent of Foothill to
use cash collateral (from its pre-petition financing
arrangements) during the reorganization proceeding. Both the
debtor-in-possession financing arrangement and the cash
collateral arrangement will require the approval of the
Bankruptcy Court.
The Company announced also that it had completed
negotiations with a liquidator relating to the sale of inventory
in connection with the closing of its Athol, Chelsea and
Fitchburg, Massachusetts and Goffstown, New Hampshire stores.
Pursuant to these arrangements, the Company received a payment
of approximately $2.5 million, which was applied toward the
reduction of the Company's secured indebtedness.
Stuarts also stated that it had received notice from the
Nasdaq Stock Market that, as a result of the low trading price
and publicly held market value of the Company's common stock,
the Company may no longer meet the listing requirements for
continued inclusion in the Nasdaq National Market and may be
subject to delisting. As a result, the Company's common stock
may be delisted from the Nasdaq National Market in the near
future, perhaps as early as May 20, 1995.
For further information, contact:
Mr. David Ferguson, President
508-520-4540, ext. 224
Mr. Antone F. Moreira, Executive Vice President and CFO
508-520-4540, ext. 222
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