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Tom Goyda, Shandwick
FOR IMMEDIATE RELEASE EDISON BROTHERS ANNOUNCES AGREEMENTSTO SELL 485 JW/JEANS WEST, CODA AND 5-7-9 STORESBAKERS LIQUIDATION POSTPONED PENDING EXPECTED SALE
ST. LOUIS, May 17, 1999--Edison Brothers Stores, which filed for Chapter 11
bankruptcy protection on March 9, has signed agreements and will request
bankruptcy court approval for two sales involving most of the stores in its
JW/Jeans West, Coda and 5-7-9 apparel chains. The company has also pulled its
Bakers footwear stores from a previously filed request for court approval to
liquidate the chain, based on the expectation that it will soon reach an
agreement to sell that chain.
Under the terms of an agreement signed today, Edison would sell a total
of 285 stores to Coda Acquisition Group, a private company, for $10.3 million.
The sale would include 263 of the more than 350 JW/Jeans West and Coda stores,
which target young, urban males, as well as 22 stores in Edison's Riggings
menswear chain, which began liquidation sales on April 30. The sale also
includes all of the merchandise inventory of JW/Jeans West and Coda stores.
Edison also signed an agreement to sell approximately 200 of the 250
stores in its 5-7-9 junior apparel chain for $13.7 million to The New 5-7-9 and
Beyond, Inc., a private company and subsidiary of A.I.J.J. Enterprises, Inc.,
commonly known as Rainbow Apparel, of Brooklyn, N.Y.
All arrangements are subject to court approval at a later date.
Edison also has amended a previous filing seeking approval to
liquidate the JW/Jeans West, Coda and 5-7-9 chains so as to include only the
approximately 40 stores now operating as 5-7-9 that are not part of the sales
agreements. If a liquidation bid for those stores from Gordon Brothers
Retail Partners LLC is approved by the bankruptcy court, clearance sales should
start later this week.
ADD ONE EDISON
Edison had previously signed a definitive agreement to sell its Repp
Ltd Big & Tall menswear stores and Repp By Mail catalog operations to J. Baker
for approximately $31.7 million, and has announced plans to sell its Princeton,
Ind. distribution center for $6.1 million. A second distribution center in
Washington, Mo. will be closed by mid-July and is currently for sale. The
company is also in the process of liquidating most of its Wild Pair footwear
stores and Riggings menswear chain.
Edison Brothers Stores Inc. operates Bakers and Wild Pair footwear
stores; 5-7-9 junior apparel stores; Riggings, JW, Coda and Repp Ltd. Big & Tall
menswear stores; and Repp By Mail men's catalog. The company has nearly 1,500
stores in the United States, Canada, Puerto Rico and the Virgin Islands.
Dates Referenced Herein and Documents Incorporated by Reference