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THE LOEWEN GROUP INC.
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(TSE: LWN) NEWS
Media Contact: James Hoggan & Associates Inc.
Karen Cook Boas or Anna Wright
(604) 739-7500 or
Email [email protected]
Email [email protected]
Investor Contact: (800) 347-7010
FOR IMMEDIATE RELEASE
THE LOEWEN GROUP CONSOLIDATES ADMINISTRATIVE OFFICES
VANCOUVER, B.C. - Sept. 6, 2000 - As part of its plan to emerge from creditor
protection as a superior operating company and a leader in the funeral and
cemetery services industry, The Loewen Group Inc. (TSE:LWN) will consolidate its
eight existing United States and Canadian administrative and corporate offices
into three offices.
The Company has been under court protection from creditors since June 1, 1999
when it filed under Chapter 11 of the U.S. Bankruptcy Code and the Canadian
Companies' Creditors Arrangement Act. It is currently engaged in discussions
with its principal creditors concerning the terms of its plan of reorganization.
John S. Lacey, Chairman of the Board, announced that Cincinnati, OH will become
one of the Company's two administrative support centers and that the Company's
U.S. operations offices in Conroe, TX and its credit and collections office in
Philadelphia, PA as well as smaller offices in Atlanta, GA and Whittier, CA will
be closed.
Mr. Lacey also announced that all Greater Vancouver area administrative
functions will be consolidated at the nearby Metrotown (Burnaby) administrative
support center, where the existing leases have been extended. The Company's
executive offices will relocate from Burnaby, B.C. to Toronto in order to bring
senior management closer to the Company's principal markets. The existing
executive office facility in Burnaby will be closed and sold.
The net impact of these changes will streamline the number of Loewen Group's
North American administrative and corporate offices from eight to three:
Toronto, Cincinnati and Vancouver (Burnaby).
"This is the latest of many changes over the past 14 months designed to
streamline our administrative and operating structure and to move the culture of
our Company away from a focus
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on acquisitions to providing the best customer service in our industry at
competitive prices," Mr. Lacey said.
Mr. Lacey said the relocation of the senior executives to Toronto will
accelerate the Company's focus on operations and customer service, and will save
travel costs and management time. "A long-standing problem of this company has
been that senior people have been too removed from operations. Placing ourselves
in the middle of the continent will improve our ability to spend time at our
locations where our business happens."
Paul A. Houston, President and Chief Executive Officer, said that streamlining
the Company's management structure is consistent with its philosophy. "Operating
decisions are best made locally while strategic policy directions are set at the
executive level. These changes announced today will free up capital, reduce
operating expenses and improve the Company's internal communications."
Mr. Houston said the Company has made substantial progress in recent months in
the processing of claims and preparation of a plan of reorganization and is
holding discussions with creditor representatives. "The Company is committed to
emerging from Chapter 11 and the CCAA proceedings at the earliest feasible
time," he said.
The Loewen Group Inc. currently owns or operates more than 1,100 funeral homes
and more than 400 cemeteries across the United States, Canada, and the United
Kingdom. The Company employs approximately 12,000 people and derives
approximately 90 percent of its revenue from its U.S. operations.
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Safe Harbor: Certain statements contained in this press release, including but
not limited to information regarding the future economic performance and
financial condition of the Company, the plans and objectives of the Company's
management and the Company's assumptions regarding such performance and plans,
are forward-looking in nature. Additional information concerning important
factors that could cause actual results to differ from the forward-looking
information contained in this release is included in the Company's publicly
filed quarterly and annual reports.
