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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
June 25, 1996
(Date of earliest event reported)
BARRY'S JEWELERS, INC.
(Exact name of registrant as specified in its charter)
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California 0-15017 95-3746316
(State or other jurisdiction of incorporation) (Commission file number) I.R.S. Employer Identification No.)
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111 West Lemon Avenue
Monrovia, California 91016
(Address of principal executive offices and zip code)
(818) 303-4741
(Registrant's telephone number)
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ITEM 5. OTHER EVENTS
Barry's Jewelers, Inc. has issued a press release dated June 25,
1996, a copy of which is incorporated by reference and is attached hereto as
Exhibit 99.1.
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ITEM 7. (C) EXHIBITS
The following Exhibits are hereby filed as part of this Form 8-K:
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Exhibit
Number Description
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99.1 Press Release dated June 25, 1996
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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 thereunto duly authorized.
BARRY'S JEWELERS, INC.
(Registrant)
Date: June 28, 1996
By: /s/ THOMAS S. LISTON
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Thomas S. Liston
President and Chief Executive Officer
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EXHIBIT INDEX
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Exhibit Page
Number Description Number
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99.1 Press Release dated June 25, 1996
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BARRY'S JEWELERS, INC.
111 WEST LEMON AVENUE
MONROVIA, CA 91016
(818) 303-4741
FAX (818) 357-7596
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CONTACTS:
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Thomas S. Liston Robert W. Bridel Eugene G. Heller
Vice Chairman and President and Silverman Heller Associates
Chief Financial Officer Chief Executive Officer (310) 208-2550
(818) 303-4741 (818) 303-4741
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FOR IMMEDIATE RELEASE
BARRY'S JEWELERS TO RESTATE FISCAL 1995 RESULTS,
WILL TAKE ONE-TIME CHARGES IN FISCAL 1996
MONROVIA, California (June 25, 1996) -- Barry's Jewelers, Inc. (Nasdaq NM:BARY)
today reported that it will restate its results for fiscal year 1995 to reflect
inventory shrinkage for that year of $1.5 million in excess of the amount
originally recorded. The discrepancy was detected during the reconciliation of
the Company's inventory for fiscal 1996. Additionally, although results are
still being audited, the Company anticipates reporting a pretax loss of
approximately $2 million for fiscal 1996, which includes approximately $1.5
million of one-time charges and $1 million of unanticipated inventory
shrinkage. The one-time charges primarily include expenses incurred for the
settlement of legal actions, the write-off of deferred financing fees related
to the redemption of Senior Secured Notes, and fees related to the recent sale
of 1.5 million shares of the Company's stock by Wells Fargo Bank to private
investors.
Thomas S. Liston, vice chairman and chief financial officer of Barry's
Jewelers, said, "We are studying this unanticipated problem with our inventory
accounting and we will immediately begin to further tighten our controls at
both the wholesale and retail levels."
(more)
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BARRY'S TO RESTATE FISCAL 1995 RESULTS/2
Robert W. Bridel, Barry's recently appointed president and chief executive
officer, said, "The systems put in place in recent years, including the
Company's new credit management system, have been instrumental in returning
Barry's to a sound financial footing. A new automated inventory management
system has done much to improve our control over inventory. However, the
discovery of this most recent situation indicates that more needs to be done in
this area, and management is prioritizing the implementation of the necessary
improvements.
"While we are naturally disappointed with this temporary setback, Barry's
remains financially sound and strategically focused," Mr. Bridel added. "This
is evidenced by the fact that, without the aforementioned charges and greater
than expected inventory shrinkage, we had anticipated reporting a profit for
fiscal 1996. Additionally, our balance sheet is strong, with shareholders'
equity of approximately $35.5 million as of May 31, 1996. Moreover, our
stores -- particularly our new superstores -- are performing well, and our
expansion program is proceeding on schedule. These factors make us confident
in the Company's current direction and future outlook, and we are
optimistically looking forward to the 1996 holiday selling season."
Barry's also reported that the inventory shrinkage problem has placed the
Company in default of certain provisions of its revolving inventory line and
its securitization facility. The Company is currently in discussion with its
lenders regarding waivers to those defaults and is confident that the situation
will be resolved favorably.
Barry's Jewelers, Inc., the nation's fourth largest independent retailer of
fine jewelry, operates 161 retail jewelry stores in 17 states throughout the
country, primarily in California, Texas, Arizona, North and South Carolina,
Utah, Montana, Colorado, and Ohio.
