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
February 7, 1996
________________________________________________
Date of report (Date of earliest event reported)
Petrie Stores Liquidating Trust
______________________________________________________
(Exact Name of Registrant as Specified in Charter)
New York 0-3777 Applied For
______________ _____________________ __________________
(State of (Commission File No.) (IRS Employer
Incorporation) Identification No.)
70 Enterprise Avenue
Secaucus, New Jersey 07094
____________________________________________________________
(Address of Principal Executive Offices and Zip Code)
(201) 866-3600
____________________________________________________
(Registrant's telephone number, including area code)
N/A
_____________________________________________________________
(Former Name or Former Address, if Changed Since Last Report)
Item 5. Other Events.
On February 7, 1996, a complaint was filed against
Petrie Stores Corporation, a New York corporation, and the
Petrie Stores Liquidating Trust (the "Liquidating Trust") by
five landlords and certain of their affiliates (collectively,
the "Plaintiffs") seeking declaratory relief and unspecified
damages for breach of contract and fraud with respect to 146
store leases as to which the complaint alleges that the
Liquidating Trust has liability as a guarantor notwithstanding
the execution of releases with respect to substantially all of
the purported lease guarantees.
The complaint (i) alleges, among other things, that
the Liquidating Trust is liable for back rent and expenses not
paid in respect of such leases by Petrie Retail, Inc., a
Delaware corporation, which filed a voluntary petition for
bankruptcy protection on October 12, 1995, or an affiliate
thereof, as tenant under the leases and (ii) seeks a declaration
that the Liquidating Trust is liable as guarantor for all future
lease payments, and related costs and expenses, due under the
leases. According to the Plaintiffs, such alleged guarantor
liability relates to approximately $85,000,000 in future lease
payments, without giving effect to any present value discount
and assuming all of the 146 stores which are the subject of the
complaint closed and the landlord in each case was unable to
mitigate its damages. Approximately $2,000,000 of this total
relates to unreleased guarantees which have been included in the
Liquidating Trust's previous contingent liability estimates. To
date, 18 of the 146 leases, representing approximately
$9,400,000 in future lease payments, based on the Plaintiffs'
liability estimates and without giving effect to any present
value discount or mitigation, have been rejected by Petrie
Retail, Inc.
The Liquidating Trust believes that, based upon
existing releases executed by Plaintiffs, other than as
indicated above, the Plaintiffs' claims are without merit. The
Liquidating Trust intends to defend itself vigorously.
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.
Dated: February 27, 1996
PETRIE STORES LIQUIDATING TRUST
By: /s/ STEPHANIE R. JOSEPH
Stephanie R. Joseph
Manager and Chief Executive
Officer
