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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
AUGUST 11, 1997
Date of Report (Date of earliest event reported)
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OLD AMERICA STORES, INC.
(Exact name of registrant as specified in charter)
DELAWARE 33-58388 13-3487813
(State of other (Commission File Number) (I.R.S. Employer
jurisdiction of Identification Number)
incorporation)
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811 North Collins Freeway
Highway 75 North
P.O. Box 370
Howe, Texas 75459
(903)532-3000
(Address, including zip code, and telephone number,
including area code, of registrant's principal executive offices)
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ITEM 3. BANKRUPTCY OR RECEIVERSHIP
On August 11, 1997, Old America Stores, Inc. (the "Registrant") and
subsidiaries filed for bankruptcy protection under Chapter 11 of Title 11 of the
United States Code (The "Bankruptcy Code") in the United States Bankruptcy Court
for the District of Delaware. It is the registrant's intention to commence the
preparation of a plan of reorganization immediately and to file such plan as
soon as possible. During the reorganization, the Registrant will conduct
business as usual as debtor-in-possession pursuant to Sections 1107(a) and 1108
of the Bankruptcy Code. Further information with subject to filing of the
voluntary Chapter 11 petition is included in a press release issued by the
Registrant, which is attached as Exhibit 99.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(c) Exhibits
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(99) Press Release dated August 11, 1997
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SIGNATURES
Pursuant to the requirements of the Securities Act of 1934, the Registrant
has duly caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
OLD AMERICA STORES, INC.
By: /s/ Jim D. Schultz
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Name: Jim D. Schultz
Title: Senior Vice President
and Chief Financial Officer
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EXHIBIT 99
For Immediate Release
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Company Contact:
Jim Schultz
Senior Vice President & CFO
(903) 532-3002
OLD AMERICA STORES, INC.(NASDAQ;OASI) AND SUBSIDIARIES ANNOUNCE CHAPTER 11
REORGANIZATION; OBTAINS EXPANDED BANK FINANCING
HOWE, TEXAS - Old America Stores, Inc. and Subsidiaries on Monday filed for
Chapter 11 bankruptcy protection. The Company's reorganization plans include
reviewing unprofitable stores, its merchandise mix and its corporate overhead in
order to make the company more competitive.
The company has already closed sixteen stores in the past six weeks and is
considering additional store closures before year end. The Company has also
recently reduced its corporate staff by approximately 20%.
According to Jerry Payton, CEO of Old America Stores, Inc., the company's
customers should not be affected by the company's bankruptcy filing. Mr. Payton
said that he believes vendors will support the company after the filing.
Concurrent with the filing, the company obtained Debtor-In-Possession financing
which provides for combined revolver and term debt. This facility increases the
company's liquidity to fund vendor purchases and operating expenses through
higher advance rates and an increased overall facility from $30,000,000 to
$35,000,000.
Payton said, "This step allows us to move ahead, establish new vendor credit
lines and once again refocus our attention on operations." "Unlike many other
Chapter 11 situations, we view this as a real positive opportunity to put some
of our problems behind us. As a management team, we pledge absolute support to
our customers, suppliers and employees, and are excited about the company's
future potential."
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Old America Stores, Inc. plans to emerge from Chapter 11 as rapidly as possible.
It is the company's intention to commence the preparation of a plan of
reorganization immediately and to file such plan as soon as practicable. During
the reorganization, the company will conduct business as usual. It plans to pay
all obligations incurred during the Chapter 11 period out of current operations
and from the working capital facility provided by its new bank line. The
company plans no changes to employee benefit programs outside the normal course
of business.
Certain statements contained in this press release which are not historical
facts are forward-looking that involve risks and uncertainties, including, but
not limited to, customer demand and trends in the crafts industry, related
inventory risks due to shifts in customer demand, the effect of economic
conditions, the impact of competitors' pricing, and other risks and
uncertainties detailed in the company's Securities and Exchange Commission
filings.
Old America Stores (http://www.oldamerica.com), a leading specialty retailer of
framing, floral, crafts, and decorative accent products, currently operates 86
stores in 22 states throughout the southern, central and western United States.
The company's stores feature picture frames and silk and dried flowers, together
with free framing and floral arranging services. Old America Stores also offers
a broad selection of decorative accent products, craft supplies, and seasonal
merchandise for do-it-yourself home decorators and craft hobbyists.
