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) April 16, 1996
Brendle's Incorporated
(Exact name of registrant as specified in its charter)
North Carolina
(State or other jurisdiction of incorporation)
0-14628 56-0497852
(Commission File Number) (IRS Employer Identification No.)
1919 N. Bridge St., Elkin, North Carolina 28621
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (910) 526-5600
Not Applicable
(Former name or former address, if changed since last report)
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ITEM 3. BANKRUPTCY OR RECEIVERSHIP
On April 16, 1996 Brendle's Incorporated (the "Company") initiated Chapter 11
reorganization proceedings by filing a petition with the United States
Bankruptcy Court for the Middle District of North Carolina.
Having identified several merchandise categories with decreasing margins and
increasing carrying costs, the Company will begin implementation of a strategic
repositioning which will focus upon six merchandise categories which have shown
significant strength and substantial opportunity. As a part of this fundamental
shift, the Company will close eighteen stores and focus its initial efforts on
the twelve selected markets which the Company will continue to serve. The
Company anticipates that its revitalized merchandise selection will have a
significant positive impact on financial performance through higher gross
margins, reduced inventory investment requirements and higher return on
investment. The Company's substantial lease liabilities, together with the
investment required for its strategic and operational restructuring, have put
significant pressure on the Company's working capital, thereby necessitating
the filing of the Company's Chapter 11 petition.
The Company's primary secured lender is providing a $25,000,000.00 debtor-in-
possession revolving credit facility, and the Company anticipates that the
reorganization process will be relatively short.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(a) Financial statements of businesses acquired: None required.
(b) Pro forma financial information: None required.
(c) Exhibits: None required.
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.
BRENDLE'S INCORPORATED
Date: May 1, 1996 By:
David R. Renegar
Vice President and
Chief Financial Officer
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