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_______________________________________________________________________________
UNITED STATES
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): January 13, 1997
HILLS STORES COMPANY
(Exact name of registrant as specified in its charter)
<TABLE>
<S> <C> <C>
Delaware 1-9505 31-1153510
(State or other juris- (Commission (I.R.S. employer
diction of incorporation) file number) identification number)
</TABLE>
15 Dan Road 02021
Canton, Massachusetts (Zip Code)
(Address of principal executive office)
Registrant's telephone number, including area code:
(617) 821-1000
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Item 5. Other Events
------------
On January 13, 1997, Hills Stores Company (the "Company") issued a press
release reporting its plan to close eight underperforming stores during the
first quarter of fiscal 1997. A copy of the Company's press release is filed
as an Exhibit to this Report and incorporated by reference herein.
Item 7. Exhibits
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The following Exhibit is filed as part of this Report:
Exhibit
Number Title
- ------ -----
99.1 Press Release dated January 13, 1997.
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.
HILLS STORES COMPANY
By: /s/ C. Scott Litten
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Name: C. Scott Litten
Title: Executive Vice President -
Chief Financial Officer
Dated: January 20, 1997
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EXHIBIT INDEX
Pursuant to Item 601 of Regulation S-K
Exhibit
Number Title
- ------ -----
99.1 Press Release dated January 13, 1997.
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EXHIBIT 99.1
PRESS RELEASE
FOR IMMEDIATE RELEASE: Investor Inquiries, Contact:
- ---------------------- John Doyle
Vice President Treasurer
Hills Stores Company
(617) 821-1000 ext. 1694
Media Inquiries, Contact:
Kathleen A. Obert
Senior Vice President
Edward Howard & Co.
(216) 781-2400
HILLS TAKES STEPS TO IMPROVE PROFITABILITY,
CLOSES EIGHT UNDERPERFORMING STORES
CANTON, MASSACHUSETTS, January 13, 1997 - Hills Stores Company (NYSE: HDS) today
announced plans to close eight stores during the first quarter of 1997 as part
of its initiatives to improve company profitability. The closures--four units
in North Carolina, three in Virginia, and one in Ohio--will reduce the chain's
overall size from its current operating base of 165 stores to 157 stores.
Affected locations are:
- High Point, North Carolina - Richmond, Virginia (2 Locations)
- Winston-Salem, North Carolina - Hampton, Virginia
- Statesville, North Carolina - Hamilton, Ohio
- Wilson, North Carolina
Gregory K. Raven, president and chief executive officer, explained the decision.
"Most of the affected stores were opened in 1994 and 1995 as part of a
"southern" expansion strategy which was unsuccessful and halted in mid-stream.
As a result, the penetration level required to successfully compete in these
markets was never achieved."
"Each of the eight stores being closed was unprofitable, with their combined
annual losses totaling more than $5 million," he continued. "Despite efforts
during 1996 to explore methods of improving their performance, we have concluded
that we cannot project sufficient improvement to justify the continued invest-
ment of resources and attention to them. While the decision to close stores is
always difficult, it is a necessary step in the improvement of the overall
performance of Hills Stores Company. This allows us to focus resources on our
strong core markets."
(more)
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HILLS ANNOUNCES STORES CLOSINGS/p.2
Raven went on to explain that the company expects to record a pretax charge
of approximately $21 million (approximately $12.5 million after tax, or
approximately $1.10 per share) during its fourth fiscal quarter which ends
February 1, 1997 to provide for the estimated costs of impairment of long-lived
assets and of store closings, including costs for employee severance, disposal
of inventories and store assets, and lease termination. These estimates are
preliminary and are subject to change as the closings and lease termination
negotiations proceed.
Store employees were notifed of the plans this morning. Going-out-of-business
sales will begin shortly. All eight stores are expected to close by late March
or early April.
The nation's eighth largest discount retailer, Hills has annual sales of
approximately $2 billion and currently operates 165 stores in 12 Midwestern and
Mid-Atlantic states. Hills has a well-established reputation for providing
broad assortments of quality merchandise at discount prices to budget-conscious
families. The company is known for its strength in current family apparel
fashions, for offering a far larger selection of toys than other discounters,
and for its extensive lines of seasonal merchandise. Hills has administrative
offices in Canton, Massachusetts; Aliquippa, Pennsylvania; and Youngstown, Ohio;
a fashion apparel buying office in New York City; and a distribution center in
Columbus, Ohio.
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