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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
Date of Report (Date of earliest event reported): December 28, 1999
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GANTOS, INC.
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(Exact name of registrant as specified in its charter)
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Michigan 0-14577 38-1414122
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(State or other jurisdiction (Commission File Number) (IRS Employer Identification
of incorporation) No.)
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1266 E. Main Street, Fifth Floor, Stamford, Connecticut 06902
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (203) 358-0294
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ITEM 5. OTHER EVENTS.
On December 28, 1999, Gantos, Inc. filed a Voluntary Petition under
Chapter 11 of the Bankruptcy Code with the United States Bankruptcy Court (the
"Chapter 11 Bankruptcy Petition"). The Chapter 11 Bankruptcy Petition is
attached as Exhibit 99.1 hereto and incorporated herein by reference. On
December 29, 1999, Gantos, Inc. issued the press release annexed as Exhibit 99.2
hereto and incorporated herein by reference.
On December 30, 1999, Gantos, Inc. announced that it had negotiated a
$40 million debtor-in possession (DIP) credit facility with its current lenders,
Foothill Capital Corporation and Paragon Capital, LLC, to fund its operations
during the voluntary reorganization period. The press release relating to the
financing is annexed as Exhibit 99.3 hereto and incorporated herein by
reference.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits.
99.1 Chapter 11 Bankruptcy Petition dated December 28, 1999.
99.2 Press Release of Gantos, Inc. dated December 29, 1999.
99.3 Press Release of Gantos, Inc. dated December 30, 1999.
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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.
GANTOS, INC.
(Registrant)
Dated: January 1, 2000 By: /s/ Thomas J. Villano
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Thomas J. Villano
Chief Financial Officer
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INDEX TO EXHIBITS
Exhibit No. Description
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99.1 Chapter 11 Bankruptcy Petition dated December 28, 1999.
99.2 Press Release of Gantos, Inc. dated December 29, 1999.
99.3 Press Release of Gantos, Inc. dated December 30, 1999.
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FORM B1 UNITED STATES BANKRUPTCY COURT VOLUNTARY PETITION
DISTRICT OF CONNECTICUT
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Name of Debtor (if individual, enter Last, First, Middle): Name of Joint Debtor (Spouse)(Last, First, Middle):
Gantos, Inc.
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All Other Names used by the Debtor in the last 6 years All Other Names used by the Joint Debtor in the last 6 years
(include married, maiden, and trade names): (include married, maiden, and trade names):
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Soc. Sec./Tax I.D. No. (if more than one, state all): Soc. Sec./Tax I.D. No. (if more than one, state all):
38-1414122
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Street Address of Debtor (No. & Street, City, State & Zip Code): Street Address of Joint Debtor (No. & Street, City, State &
1266 E. Main Street, 5th FL Zip Code):
Stamford, CT 06902 99 51806 AHWS
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County of Residence or of the County of Residence or of the
Principal Place of Business: Fairfield Principal Place of Business:
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Mailing Address of Debtor (if different from street address): Mailing Address of Joint Debtor (if different from street address):
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Location of Principal Assets of Business Debtor 117 women's fashion retail stores located in CT and 25 other
(if different from address above): states with corporate headquarters and warehouse in Stamford, CT
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INFORMATION REGARDING THE DEBTOR (CHECK THE APPLICABLE BOXES)
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Venue (Check any applicable box)
[X] Debtor has been domiciled or has had a residence, principal place of business, or principal assets in this District for 180 days
immediately preceding the date of this petition or for a longer part of such 180 days than in any other District.
[ ] There is a bankruptcy case concerning debtor's affiliate, general partner, or partnership pending in this District.
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TYPE OF DEBTOR (Check all boxes that apply) CHAPTER OR SECTION OF BANKRUPTCY CODE UNDER WHICH
[ ] Individual(s) [ ] Railroad THE PETITION IS FILED (Check one box)
[X] Corporation [ ] Stockbroker [ ] Chapter 7 [X] Chapter 11 [ ] Chapter 13
[ ] Partnership [ ] Commodity Broker [ ] Chapter 9 [ ] Chapter 12
[ ] Other [ ] Sec. 304 - Case ancillary to foreign proceeding
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- ----------------------------------------------------------------- FILING FEE (Check one box)
NATURE OF DEBTS (Check one box) [ ] Full Filing Fee Attached
[ ] Consumer/Non-Business [X] Business [X] Filing Fee to be paid in installments (Applicable to
- ----------------------------------------------------------------- individuals only)
Chapter 11 Small Business (Check all boxes that apply) Must attach signed application for the court's
[ ] Debtor is a small business as defined in 11 U.S.C. Section 101 consideration certifying that the debtor is unable to pay fee
[ ] Debtor is and elects to be considered a small business under except in installments.
11 U.S.C. Section 121(e) (Optional) Rule 1006(b). See Official Form No. 3.
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STATISTICAL/ADMINISTRATIVE INFORMATION (Estimates only) THIS SPACE IS FOR COURT USE ONLY
[X] Debtor estimates that funds will be available for distribution to unsecured creditors. ----------------------------
[ ] Debtor estimates that, after any exempt property is excluded and administrative expenses |
paid, there will be no funds available for distribution to unsecured creditors. |
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1-15 16-49 50-99 100-199 200-999 1000-over |
Estimated Number of Creditors |
[ ] [ ] [ ] [ ] [ ] [ ] |
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Estimated Assets |
|
50 to $50,001 to $100,001 to $500,001 to $1,000,001 to $10,000,001 to $50,000,001 to More than | 99 Dec 28 PM 1:55
$50,000 $100,000 $500,000 $1 million $10 million $50 million $100 million $100 million |
[ ] [ ] [ ] [ ] [ ] [ ] [ ] [ ] |
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Estimated Debts |
|
50 to $50,001 to $100,001 to $500,001 to $1,000,001 to $10,000,001 to $50,000,001 to More than |
$50,000 $100,000 $500,000 $1 million $10 million $50 million $100 million $100 million |
[ ] [ ] [ ] [ ] [ ] [ ] [ ] [ ] |
|
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VOLUNTARY PETITION Name of Debtors
(This page must be completed and filed in every case) GANTOS, INC.
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PRIOR BANKRUPTCY CASE FILED WITHIN LAST 6 YEARS (IF MORE THAN ONE, ATTACH ADDITIONAL SHEET)
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Location Cash Number: Date Filed:
Where Filed: NONE
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PENDING BANKRUPTCY CASE FILED BY ANY SPOUSE, PARTNER OR AFFILIATE OF THIS DEBTOR (IF MORE THAN ONE, ATTACH ADDITIONAL SHEET)
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Name of Debtor: Case Number: Date Filed:
NONE
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District Relationship: Judge:
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SIGNATURES
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SIGNATURE(S) OF DEBTOR(S) (INDIVIDUAL/JOINT) SIGNATURE(S) OF DEBTOR (CORPORATION/PARTNERSHIP)
I declare under penalty of perjury that the information provided I declare under penalty of perjury that the information provided
in this petition is true and correct. in this petition is true and correct, and that I have been
[If petitioner is an individual whose debts are primarily authorized to file this petition on behalf of the debtor.
consumer debts and has chosen to file under chapter 7.] I am
aware that I may proceed under chapter 7, 11, 12 or 13 of The debtor requests relief in accordance with the chapter of
title 11, United States Code, understand the relief available title 11, United States Code, specified in this petition.
under each such chapter, and choose to proceed under chapter 7,
I request relief in accordance with the chapter of title 11,
United States Code, specified in this petition. X /s/ Arlene Stern
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Signature of Authorized Individual
X NOT APPLICABLE
----------------------------------------------------- ARLENE STERN
Signature of Debtor -----------------------------------------------------
Print or Type Name of Authorized Individual
X NOT APPLICABLE
----------------------------------------------------- PRESIDENT AND CEO
Signature of Joint Debtor -----------------------------------------------------
Title of Authorized Individual
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Telephone Number (If not represented by attorney) -----------------------------------------------------
Date
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Date
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SIGNATURE OF ATTORNEY SIGNATURE OF NON-ATTORNEY PETITION PREPARER
X /s/ JAMES BERMAN I certify that I am a bankruptcy petition preparer as defined
----------------------------------------------------- in 11 U.S.C. Section 110, that I prepared this document for
Signature of Attorney for Debtor(s) compensation, and that I have provided the debtor with a
copy of this document.
JAMES BERMAN, ct06027
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Printed Name of Attorney for Debtor(s)/Bar No. ------------------------------------------------------
Printed Name of Bankruptcy Petition Preparer
ZEISLER & ZEISLER, P.C.
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Firm Name Social Security Number
558 CLINTON AVENUE BRIDGEPORT, CT 06605 ------------------------------------------------------
----------------------------------------------------- Address
Address
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----------------------------------------------------- Names and Social Security numbers of all other individuals
who prepared or assisted in preparing this document.
203-368-4234
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Telephone Number
December 28, 1999
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Date
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EXHIBIT A If more than one person prepared this document, attach
(To be completed if debtor is required to file periodic additional sheets conforming to the appropriate official form
reports (e.g., forms 10K and 10Q) with the Securities for each person.
and Exchange Commission pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934 and is requesting X NOT APPLICABLE
relief under chapter 11) ------------------------------------------------------
Signature of Bankruptcy Petition Preparer
/X/ Exhibit A is attached and made a part of this petition.
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Date
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EXHIBIT B
(To be completed if debtor is an individual A bankruptcy petition preparer's failure to comply with the
whose debts are primarily consumer debts) provisions of title 11 and the Federal Rules of Bankruptcy
I, the attorney for the petitioner named in the foregoing Procedure may result in fines or imprisonment or both.
petition, declare that I have informed the petitioner that 11 U.S.C. Section 110; 18 U.S.C. Section 156.
[he/she] may proceed under chapter 7, 11, 12 or 13 of title 11,
United States Code, and have explained the relief available
under each such chapter.
X
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Signature of Attorney for Debtor(s) Date
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Exhibit 99.2
GANTOS, INC.
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NEWS RELEASE
CONTACT: Thomas Villano
(203) 462-3704
GANTOS, INC. FILES FOR REORGANIZATION
UNDER CHAPTER 11; STORES TO CONTINUE IN BUSINESS.
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Stamford, CT, December 29, 1999 - Gantos, Inc. today announced that it
filed a voluntary reorganization petition under Chapter 11 of the U.S.
Bankruptcy Code late yesterday. The petitions were filed in the U.S. Bankruptcy
Court for the District of Connecticut at Bridgeport. The company's executive
offices are located in Stamford, Connecticut.
Arlene Stern, Chief Executive Officer, said: "The decision to file a
Chapter 11 bankruptcy petition was a difficult and painful one. Reorganization
provides the most orderly, structured means for us to concentrate on operating
our stores. The reorganization will enable Gantos to continue in the ordinary
course of its operations, while at the same time providing senior management
with the necessary time to assess and restructure its debt in an effort to
emerge from Chapter 11 as a stronger and more competitive retailer."
"Our goal is to make this reorganization invisible to our customers,
and to ensure that our vendors and suppliers are reimbursed in a timely manner
for all merchandise and services provided to Gantos while it is in Chapter 11."
Stern commented: "Stores remain open and all normal customer services
and store
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policies, including credit card purchases and payments, billing adjustments,
merchandise returns and gift certificates, will continue as usual."
Stern stated: "We anticipate that a creditors committee will be
appointed shortly and we will work closely with this committee and other key
creditors to reorganize and restructure the company's obligations as quickly as
possible." She continued: "We believe that this process will enable us to focus
on the future, to preserve the operations of our stores for everyone's benefit,
and to concentrate on our primary goal of selling merchandise, without
disruption."
Gantos, Inc. is a specialty retailer of quality women's wear and
accessories. The Company currently operates 117 stores in 24 states.
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Exhibit 99.3
GANTOS, INC.
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NEWS RELEASE
CONTACT: Thomas Villano
(203) 462-3704
GANTOS, INC. REACHES AGREEMENT WITH CURRENT LENDERS
FOR $40 MILLION DEBTOR-IN-POSSESSION CREDIT FACILITY
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Stamford, CT, December 30, 1999 - Gantos, Inc. today announced that it
has negotiated a $40 million debtor-in possession (DIP) credit facility with its
current lenders, Foothill Capital Corporation and Paragon Capital, LLC, to fund
its operations during the voluntary reorganization period. Gantos filed a
voluntary reorganization petition under Chapter 11 of the U.S. Bankruptcy Code
on December 28, 1999 (U.S. Bankruptcy Court for the District of Connecticut at
Bridgeport, Case No. 99-51806-AHWS). The DIP credit facility contains similar
terms to Gantos' pre-filing credit facility with its lenders, including similar
borrowing base calculations. The judge presiding over the filing, Chief U.S.
Bankruptcy Judge Alan H.W. Schiff, approved of Gantos' use of the DIP credit
facility on an interim basis through January 18, 2000. It is expected that final
approval by the U.S. Bankruptcy Court of the DIP credit facility will be
received on January 18, 2000.
Arlene Stern, Chief Executive Officer, said: "The financial support
from Foothill and Paragon will provide Gantos with sufficient availability to
continue in the ordinary course of its
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operations, while senior management assesses and restructures its debt in an
effort to emerge from Chapter 11 as a stronger and more competitive retailer.
The DIP credit facility will help ensure that there will be no disruption to our
customers and that our vendors and suppliers will be reimbursed in a timely
manner for all merchandise and services provided to Gantos while it is in
Chapter 11."
This news release contains forward-looking statements, which are based
on Gantos' expectations and are subject to a number of risks and uncertainties,
certain of which are beyond Gantos' control. Actual results could vary
materially from expected results due to a variety of factors, including, but not
limited to, Gantos' ability to obtain final approval from the U.S. Bankruptcy
Court for the DIP credit facility, Gantos' ability to satisfy the terms and
conditions of the DIP credit facility, Gantos' ability to stem recurring losses
from operations, the general performance of the economy, specifically as it
affects the retail apparel industry, Gantos' comparable store sales changes,
Gantos' ability to obtain merchandise, and other factors applicable to Gantos
and its business referred to in the Securities and Exchange Commission filings
of Gantos, particularly Gantos' Annual Report on Form 10-K for the year ended
January 30, 1999 and Gantos' Quarterly Reports on Form 10-Q for the periods
ended May 1, 1999, July 31, 1999 and October 30, 1999.
Gantos, Inc. is a specialty retailer of quality women's wear and
accessories. The Company currently operates 117 stores in 24 states.
