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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
C U R R E N T R E P O R T
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
January 6,1995
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Date of Report (Date of earliest event reported)
Lamonts Apparel, Inc.
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(Exact Name of Registrant As Specified In Its Charter)
Delaware
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(State or Other Jurisdiction of Incorporation)
0-15542 # 75-2076160
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(Commission File Number) (IRS Employer Identification No.)
3650 131st Avenue S.E., Bellevue, Washington 98006
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(Address of Principal Executive Offices) (Zip Code)
(206) 562-8386
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(Registrant's Telephone Number, Including Area Code)
NOT APPLICABLE
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(Former Name or Former Address, If Changed Since Last Report)
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Item 3: Bankruptcy or Receivership.
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On January 6, 1995, the Registrant filed a voluntary petition for
reorganization relief under Chapter 11 of the United States Bankruptcy Code in
the United States Bankruptcy Court for the Western District of Washington. The
Registrant is in possession of its property and is maintaining and operating its
business as a debtor-in-possession. A press release issued by the Registrant on
January 6, 1995, is attached as an exhibit hereto and incorporated by reference
in its entirety.
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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.
Lamonts Apparel, Inc.
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Registrant
Dated: January 10, 1995
/s/ Earle J. Spokane
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Name: Earle J. Spokane
Title: Executive Vice President
and Chief Financial Officer
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EXHIBIT INDEX
Exhibit Number Description
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99.1 Press Release,
issued on
January 6, 1995
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CONTACT: Rivian Bell
Lance Ignon
Sitrick Krantz & Company
(206) 562-8364
(310) 788-2850
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NEW MANAGEMENT TO REORGANIZE LAMONTS UNDER CHAPTER 11;
COMPANY OBTAINS DIP FINANCING
CHAIN TO CLOSE SIX UNPROFITABLE STORES
Bellevue, WA -- January 6, 1995 -- The new senior management of Lamonts
Apparel, Inc., (Nasdaq:LMNT) announced today that it will revitalize its
merchandising and implement a permanent capital restructuring, which is intended
to strengthen the company's balance sheet and improve liquidity, through a
voluntary reorganization under Chapter 11 of the U.S. Bankruptcy Code. The
filing took place today in the U.S. Bankruptcy Court for the Western District of
Washington for Seattle. Lamonts, with 48 stores, has operated family apparel
stores in the Pacific Northwest for 28 years and is a well-recognized name in
its markets.
Simultaneous with the filing, Lamonts announced that Foothill Capital
Corporation, its secured lender, has agreed to provide up to $32 million in
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debtor-in-possession (DIP) financing based on available collateral. Upon Court
approval, the new DIP agreement will replace the company's current working
capital facility with Foothill.
"The Chapter 11 proceeding gives us the necessary time to streamline the
company and revitalize our business so that we can serve the best interests of
our constituents," stated Alan Schlesinger, chairman, president and chief
executive officer who joined Lamonts in November to lead the new senior
management team. "I am pleased to add that Lamonts' reorganization efforts are
being supported by a number of the company's creditors."
He went on to state that "daily operations at our stores will continue as
usual. We expect to be able to provide our customers as good or better a
selection of goods and services than ever. And we are especially excited about
our newest store in Issaquah, WA, which should open in March on schedule to
serve our Eastside Seattle area customers."
"There is a niche for Lamonts to fill for those seeking value-priced
fashions for the entire family. For our loyal customers, we plan to get back on
track and once again provide value every day to make Lamonts the region's most
desirable family apparel store."
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Mr. Schlesinger said that Lamonts filed Chapter 11 after an extensive
review of the operational and financial issues facing the company, including its
current and future cash needs.
"We concluded that prompt and decisive action had to be taken so that we
could achieve our capital objectives once and for all", he said. "The
reorganization is designed to create a stronger balance sheet than this company
has seen in a long time. And the Chapter 11 proceeding gives us a unique
opportunity to reduce our expense structure, reject leases on unprofitable sites
and renegotiate better lease terms for certain stores. We need every store
operating at a four-wall profit, and we believe this goal is very achievable.
"This is not just a financing story, however. We must satisfy our
customers, obtain the best possible terms from our vendors, and provide friendly
service and great value that will encourage customers to keep shopping at our
stores."
Mr. Schlesinger said Lamonts would immediately ask the Court for permission
to close six unprofitable stores. The six stores slated for closing are located
in Vancouver, Everett, and Lakewood, WA; Medford, OR; Ogden, UT; and the
downtown clearance center in Spokane, WA.
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"Once the Court grants permission, Lamonts will prepare the stores for
going-out-of-business sales, which should begin January 21," he said. "As far
as employees are concerned, we will ask the Court to allow us to provide full
benefits, including severance, without interruption."
Mr. Schlesinger went on to state that during the Chapter 11 proceeding,
"transactions which occur in the ordinary course of business should go on just
as before the filing. We expect paychecks to be issued at the same time as if
no proceeding had been filed."
He added that "our stores will be well stocked. Given the nearly 30-year
relationships we have in the industry, we believe that our key suppliers will
work with us during this period, as they have with other companies in similar
situations. We will be contacting each of our key suppliers immediately to do
what we can to ensure their support."
Mr. Schlesinger noted that, while federal law generally prohibits Lamonts
from paying for goods contracted before the filing, goods and services received
after the filing will be paid in the ordinary course of business.
"In fact," he emphasized, "such payments are given a priority status by the
Court."
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Lamonts began streamlining its operations in 1993 with the closing of one
unprofitable store in Oregon. In September 1994, the company announced the
closing of three additional stores along with five pilot children's apparel
stores. In mid-November 1994, Mr. Schlesinger was asked to join the company to
head a new senior management team dedicated to revitalizing the company's
merchandising and customer service and to further streamlining its operations.
The company also reported today that its remaining outside directors resigned.
Founded in 1967, Lamonts Apparel, Inc., is headquartered in Bellevue, WA,
in the greater Seattle area. The company employees approximately 2,000
employees at its corporate headquarters and at 48 stores located in Alaska,
Idaho, Montana, Oregon, Utah and Washington.
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