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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 or 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
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DATE OF REPORT: November 2, 1998
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SUN TELEVISION AND APPLIANCES, INC.
(Exact Name of Registrant as specified in its charter)
Ohio 0-19269 31-1178151
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(State or other (Commission File No.) (IRS Employer
jurisdiction of Identification Number)
incorporation or
organization)
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6600 Port Road
Groveport, Ohio 43125
(614) 492-5600
(Address, including zip code, and telephone number
including area code of Registrant's principal executive offices)
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Not Applicable
(Former name or address, if changed since last report)
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ITEM 2. BANKRUPTCY OR RECEIVERSHIP
On November 2, 1998, Sun Television and Appliances, Inc. (the
"Company") announced that after an exhaustive review of its strategic
alternatives to reorganize, sell or liquidate, it has decided to liquidate.
A copy of the press release issued by the Company on November 2, 1998,
reporting the decision to liquidate, is filed herewith as Exhibit 99.1 and
incorporated herein by reference.
ITEM 5. OTHER EVENTS
In a separate matter, Macy T. Block retired from the Board of Directors
of the Company, effective October 15, 1998. Mr. Block co-founded the company
with his brother in 1949 and led the management team as Chairman of the Board
and Chief Executive Officer until his retirement from day-to-day activities in
August 1995.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits.
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Exhibit No. Description
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99.1 News Release of Sun Television and Appliances, Inc. dated
November 2, 1998.
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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.
SUN TELEVISION AND APPLIANCES, INC.
Date: November 3, 1998 By: /s/ Dennis L. May
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Dennis L. May, President
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EXHIBIT 99.1
SUN TELEVISION AND APPLIANCES, INC. ANNOUNCES DECISION TO LIQUIDATE
COLUMBUS, OHIO, NOVEMBER 2, 1998. SUN TELEVISION AND APPLIANCES, INC.
(OTC: BULLETIN BOARD:SNTV) reported today that after an exhaustive review of its
strategic alternatives to reorganize, sell or liquidate the Company, it has
decided to liquidate. The Company said that a liquidator for store inventory
would be appointed by November 13, 1998 and that it expected to complete the
liquidation and subsequent store closings by the end of the year. Approximately
2,800 employees will be affected as a result of the liquidation. A core group of
employees required to assist with the liquidation and wrap-up of Company affairs
will continue to work for a limited period of time.
R. CARTER PATE, CHAIRMAN OF THE BOARD AND CEO, SAID, "OVER THE COURSE
OF THE LAST FORTY FIVE DAYS WE HAVE COMPLETED AN EXHAUSTIVE REVIEW OF POTENTIAL
ALTERNATIVES TO REORGANIZE OR FIND A BUYER(S) FOR THE COMPANY. REGRETTABLY, WE
WERE UNABLE TO CONTINUE THE CHAIN AS A GOING CONCERN. THE COMPANY (IN
CONSULTATION WITH THE OFFICIAL COMMITTEE OF UNSECURED CREDITORS) CONCLUDED THAT
DUE TO THE CONTINUING DECLINE IN THE COMPANY'S PERFORMANCE AND THE RESULTING
LACK OF VENDOR SUPPORT, THE BEST ALTERNATIVE TO MAXIMIZE THE VALUE OF THE
COMPANY FOR ITS CREDITORS IS TO SELL THE COMPANY OR CARRY OUT AN ORDERLY
LIQUIDATION. OUR ATTEMPTS TO SELL THE COMPANY AS A GOING CONCERN HAVE FAILED,
THEREFORE, LIQUIDATING THE COMPANY IS THE ONLY VIABLE ALTERNATIVE. THIS DECISION
WAS VERY DIFFICULT TO MAKE AND WE REGRET THE IMPACT THAT IT WILL HAVE ON OUR
EMPLOYEES, SHAREHOLDERS, VENDORS, CREDITORS AND OTHER BUSINESS PARTNERS."
THIS ACTION FOLLOWS SUN'S ANNOUNCEMENT ON SEPTEMBER 16, 1998 THAT IT
HAD FILED A VOLUNTARY CHAPTER 11 BANKRUPTCY PETITION IN THE U.S. BANKRUPTCY
COURT - DISTRICT OF DELAWARE. SUN HAD SOUGHT AND RECEIVED BANKRUPTCY COURT
APPROVAL TO CLOSE 29 OF ITS 59 STORE LOCATIONS ON OCTOBER 8, 1998.
Sun Television and Appliances, Inc. is a regional specialty retailer of
consumer electronics, home appliance and office products.
TO ACCESS THIS YEAR'S NEWS RELEASES FOR SUN VIA FACSIMILE TRANSMISSION, PLEASE
CALL COMPANY NEWS ON CALL AT 1-800-758-5804, COMPANY CODE 829172 OR ACCESS
THROUGH THE INTERNET AT
OR
INVESTOR RELATIONS/MEDIA CONTACTS: MELODYE DEMASTUS, MELROSE CONSULTING:
MEDIA: (614) 529-4497; INVESTOR RELATIONS: (614) 771-0860.
