Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SATURDAY, June 11, 1994 TAG: 9406170121
SECTION: BUSINESS PAGE: A6 EDITION: METRO
SOURCE: By SANDRA BROWN KELLY STAFF WRITER
DATELINE: LENGTH: Short
The bookstores in Blacksburg and on Roanoke's City Market want to use cash from current sales to pay operating expenses, including the purchase of new merchandise. A unit of NationsBank, the stores' principal creditor, wants the money paid to it.
The attorney for Richard Walters, principal partner in BS&T, said if the court rules that he can't use the cash to operate, the stores will have to close.
BS&T's financial problems mean it cannot buy merchandise on credit; but without books, recordings, magazines and greeting cards, it can't attract customers.
"He can't stay open if we lose on Wednesday," said Roanoke lawyer Tom Dickinson. "If we lose, we'll shut down that day."
However, Dickinson said he is "cautiously optimistic" that the stores will be able to continue operating. The Blacksburg store will close on Sundays until mid-August, Walters said.
The company owes about $500,000 on money borrowed at an interest rate of 18 percent, according to documents filed with the court. The stores have an inventory valued at cost at about $222,000.
Weekly sales from late April through the end of May ranged from $15,989 to $20,013, the court records show.
BS&T filed for Chapter 11 bankruptcy, seeking protection from creditors during financial reorganization, in late April.
by CNB