FORM 8-K
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
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 20, 1998
ONE PRICE CLOTHING STORES, INC.
(Exact name of registrant as specified in its charter)
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Delaware 0-15385 57-0779028
(State or other jurisdiction (Commission File (IRS Employer Identification
incorporation) Number) Number)
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Highway 290 Commerce Park
Duncan, South Carolina, 29334
(Address of principal executive offices; zip code)
Registrant's telephone number, including area code: 864-433-8888
(Former name or former address, if changed since last report)
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Item 5. Other Events
On January 20, 1998, One Price Clothing Stores, Inc. issued the attached
Press Release, which press release is incorporated herein by reference.
Item 7. Financial Statements and Exhibits
(c) Exhibits
99. Press release dated January 20, 1998
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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 hereunto duly authorized.
ONE PRICE CLOTHING STORES, INC.
(Registrant)
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By: /s/ Stephen A. Feldman
Name: Stephen A. Feldman
Executive Vice President &
Chief Financial Officer
Date: January 20, 1998
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FOR IMMEDIATE RELEASE Contact: C. Burt Duren
Treasurer
Telephone: (864) 486-6222
Email: [email protected]
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One Price Clothing Stores to Strengthen Focus on Core Business,
Cut $6.5 million in Costs; Taking $2.2 Million Restructuring Charge
DUNCAN, SC, January 20 -- One Price Clothing Stores, Inc. (NASDAQ:ONPR) today
announced several initiatives designed to return the Company to profitability,
including the closing of approximately 75 low-volume, underperforming stores and
the elimination of 300 positions in its chain wide workforce of 5,300.
Approximately eighty-five percent of the positions being eliminated are
attributable to store closings. Whenever possible, employees affected will be
given an opportunity to transfer to other stores or positions.
The Company expects future annualized cost savings of $6.5 million from these
actions and will take a one-time charge to earnings of approximately $2.2
million in the fiscal year ending January 31, 1998. A majority of the charge
relates to the noncash write-off of assets in the stores to be closed. The
remainder of the charge relates to severance and outplacement benefits and other
expenses expected to be incurred under the plan.
"These actions are painful but necessary steps to returning One Price to a
leading position in the off-price apparel sector," said Larry I. Kelley,
President and Chief Executive Officer. "We have the right strategy. We need to
improve execution and communicate better to our customers our goal of providing
the very best value in all merchandise categories offered. In 1998, we are
committed to making sure the price-value appeal of our merchandise is compelling
to our core customers."
Kelley pointed out that increasing the portion of merchandise priced at $7 is a
key element of the plan. "Over the past year, the chain confused customers by
introducing items at too many price points. We will address the pricing
confusion by returning to our roots with a predominant apparel presentation
priced at $7," Kelley said. "At the same time, we will limit our outstanding
Expanded Price Point items to that merchandise which we have determined is
clearly desired by our customers and could not be offered for $7."
The Company said all of the affected stores will be closed by the end of the
1998 fiscal year, with 29 expected before the end of this month. One Price has
previously announced its plans to limit new store openings in the first half of
fiscal 1998 to six stores.
Final results for the fourth quarter and fiscal year ending January 31, 1998
will be reported during the week ending March 27,1998.
One Price offers first quality, in-season women's and children's apparel and
accessories. The company operates 688 stores in 27 states, the District of
Columbia, Puerto Rico and the U.S. Virgin Islands.
Safe harbor statement under the Private Securities Litigation Reform Act of
1995: Certain statements in this press release may be forward looking in nature,
or "forward-looking statements" as defined in the Private Securities Litigation
Reform Act of 1995, including references to the expected results of the
Company's cost-reduction initiatives. All forward-looking statements made by the
Company involve material risks and uncertainties and are subject to change based
on various important factors which may be beyond the Company's control,
including future sales. Accordingly, the Company's future performance and
financial results may differ materially from those expressed or implied in any
such forward-looking statements. Such factors include, but are not limited to,
those described in the Company's filings with the Securities and Exchange
Commission. Any forward-looking statements should be evaluated in light of these
important risk factors. The Company does not undertake to publicly update or
revise its forward-looking statements even if experience or future changes make
it clear that any projected results expressed or implied therein will not be
realized.
