ROANOKE TIMES 

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, March 11, 1992                   TAG: 9203110040
SECTION: BUSINESS                    PAGE: B-5   EDITION: METRO 
SOURCE: GEORGE KEGLEY BUSINESS EDITOR
DATELINE:                                 LENGTH: Medium

JUDGE OKS SIDNEY'S PLAN

Sidney's, a Roanoke-based chain of 20 women's clothing stores, is on its way out of bankruptcy. Judge Ross Krumm on Tuesday approved the company's reorganization plan, including payment of unsecured creditors with stock.

Under the plan, about 250 unsecured creditors will get preferred stock in the company for their claims of more than $3 million in debt.

The plan was endorsed by Dominion Bank, the largest creditor, and by most of the smaller creditors. Negative mail votes came from nine creditors who claimed Sidney's owes them about $123,000. No one opposed the plan at a hearing Tuesday.

The plan provides for payment of Dominion's debt of $1.7 million through acquisition of the company's Martinsville and downtown Roanoke stores and two Airport Road lots. And the bank is the beneficiary of a life insurance policy on Sidney Weinstein, owner of the company.

Weinstein said his clothing sales "have been uneven because of uneven weather." Business has been quiet and Easter, an important season for retailers, is late this year, he said.

The company has sold its headquarters and distribution center near Roanoke Regional Airport and moved back to its former downtown store on Jefferson Street. Sidney's reduced its size from 58 to 20 stores soon after it filed for bankruptcy reorganization in January 1991.

The plan is expected to take effect in about a month. A major unsettled factor is a 50-acre tract in South Roanoke owned by Sidney's, awaiting a ruling by Krumm on jurisdiction.

Weinstein wants to sell the land for development into housing sites, but neighbors of the property oppose his move to gain access from Peakwood Drive. The opponents are trying to move the case from bankruptcy court to a state court over the company's objection.

If the property can be sold, Weinstein said, it will be "of significant value to the creditors." The land was appraised at $750,000 more than three years ago. 


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