UNITED STATES
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): January 20, 1998
Venture Stores, Inc.
(Exact name of Registrant as specified in its charter)
Delaware 1-10590 43-0914490
(State or Other (Commission (I.R.S.Employer
Jurisdiction of File Number) Identification No.)
Incorporation)
2001 East Terra Lane, O'Fallon, Missouri 63366-0110
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (314) 281-5500
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Item 3. Bankruptcy or Receivership
On January 20, 1998, Venture Stores, Inc. (the "Company") filed
in the United States Bankruptcy Court for the District of
Delaware a voluntary petition for reorganization under Chapter 11
of title 11 of the United States Code, case number 98-101 (the
"Chapter 11 Filing"). The Company continues in possession of its
properties and is operating and managing its business as debtor-
in-possession subject to Court approval for certain actions of
the Company.
A copy of the press release issued by the Company on January 20,
1998, reporting the Chapter 11 Filing is filed as Exhibit 99
hereto.
Item 7. Financial Statements and Exhibits
(c) Exhibits
99 Press Release, dated January 20, 1998
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, thereto duly authorized.
VENTURE STORES, INC.
(Registrant)
By: /s/ Russell E. Solt
Name: Russell E. Solt
Title: Executive Vice President -
Administration and
Chief Financial Officer
Date: January 28, 1998
Exhibit 99
FOR IMMEDIATE RELEASE Media Contact:
Tom Goyda or Randy Myers
(314) 281-6431
VENTURE STORES INITIATES CHAPTER 11
REORGANIZATION PROCEEDINGS
Company Has Obtained $190 Million in DIP Financing
O'Fallon, Mo., January 20, 1998 -- Venture Stores, Inc.
(NYSE:VEN) today filed for reorganization under Chapter 11 of the
U.S. Bankruptcy Code to give the company time to continue its
strategic repositioning and evaluate other options. The company
also announced that it has obtained from its current bank group,
led by BT Commercial Corp., a new $190 million debtor-in-
possession revolving credit facility that will provide the
company with adequate capital to continue operations during its
reorganization.
"We have fought for longer than anyone thought we could to
complete Venture's repositioning, retain value for shareholders
and give the company a chance for success," explained Robert N.
Wildrick, the company's chairman and chief executive officer.
"At this point, however, we need the time out afforded by a
Chapter 11 reorganization to cut expenses, rebuild sales and
customer confidence, and get our merchandise mix balanced to
achieve profitability."
Since March 1996, Venture has been implementing a major program
to reposition the company's stores from a general merchandise
discount format to a new family value retail concept. Venture
has focused on offering time-pressed, value-minded shoppers an
expanded assortment of high quality home, family, and leisure
merchandise at low prices.
"Customer response to the repositioning initiatives that we have
been able to execute effectively has been very positive, which
demonstrates that our overall strategy is sound," Wildrick noted.
"Unfortunately, we started from an extremely difficult position
and have been hampered at every step of the process by a series
of external factors."
According to Wildrick, Venture has had ongoing problems with
receiving timely merchandise shipments from many vendors because
of constant rumors and speculation about the company's future.
This meant that stores were frequently out of stock on advertised
merchandise and basic items, which undermined sales and customer
confidence. In addition, Venture was unable to achieve the right
merchandise mix, which had a negative impact on margins and
profitability. The resulting poor financial results made vendors
even more reluctant to ship merchandise, continuing the cycle.
"Despite a tremendous amount of effort on the part of the entire
Venture team, we have been caught in a cycle that has been
impossible to break outside of Chapter 11," he added. "Now, we
will be able to correct many of the in-stock problems we have
faced, win back customer confidence and achieve a more profitable
mix of goods."
Venture's 93 family value stores in the Midwest will remain open
and continue to offer a selection of high quality merchandise at
everyday low prices. Stores will honor all gift certificates,
merchandise credits, customer returns and layaway arrangements.
While the company plans to review the profitability of each of
its stores on a case-by-case basis and will likely close some
locations, no decisions regarding any specific store closings
have been finalized at this point.
The company will also begin immediately to implement efforts to
reduce expenses by approximately $8 million to $10 million,
including consolidations at its headquarters in O'Fallon, Mo.
Specific plans have not been finalized, but affected associates
will be notified as soon as possible. The reorganization will
have no immediate impact on staffing at Venture's stores, and
will not affect its existing medical insurance, retirement or
profit sharing plans.
For Further Information
In order to keep interested parties up-to-date on Venture's
progress and current status, the company provides several sources
of information:
Customers should direct questions to the manager at their
local Venture store.
Associates, vendors and shareholders can call an automated
telephone hotline providing up-to-date information at
314/281-6469.
Press releases, weekly coverage reports and other information
will also be posted on Venture's Web site at
http://www.venturestores.com.
News media requests can be directed to 314/281-6431.
Venture Stores, Inc. operates 93 family value stores in nine
states. The company's common stock is traded on the New York
Stock Exchange under the symbol VEN.
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