ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Thursday, July 4, 1996 TAG: 9607050044
SECTION: BUSINESS PAGE: B-8 EDITION: HOLIDAY
SOURCE: MAG POFF STAFF WRITER
Holdren's Inc., a Roanoke-based appliance retailer, has completed sale of the company to North Carolina investors. The assets-only transaction leaves in doubt whether some of the former company's debts will be paid.
Steve Terry, general manager of the new company - Holdren's of Virginia - said Wednesday the $2.3 million acquisition transferred assets to the new corporation while the liabilities remain with the old company.
That means all secured creditors of the old company will be paid, according to Terry, who was vice president and operations manager for the former corporation. But Terry said he did not know what would happen to the debts owed to unsecured creditors.
As to the possibility of bankruptcy by the old company, Terry said "that should not happen."
Holdren's Inc. reported assets of nearly $2.3 million and liabilities of $3.1 million on April 30, including nearly $400,000 of long-term debt. The company had a negative net worth of $837,701 on that date.
Liabilities remaining with the old corporation included accounts payable of more than $2.2 million. The accounts receivable, inventories and real estate were transferred to the new corporation.
Buyer of the assets is Crenshaw TV & Appliance Co. of Raleigh. Its acquisition of Holdren's Inc. was completed Friday.
Terry said the president of the new Holdren's of Virginia Inc., a North Carolina corporation, is Harold Bagwell. The vice president is Steve Vaughn. Both men are from Raleigh and hold the same titles with Crenshaw TV & Appliance.
Stan Cross, who was president of Holdren's Inc., has left the company. Terry said Cross left to pursue "other personal interests."
Terry said Crenshaw purchased the Holdren's assets to expand into a new, but contiguous, geographical area. Crenshaw is now a 14-store chain.
The chain is looking for growth of its entire organization, Terry said. It purchased Holdren's for an opportunity to grow within the region and create a more powerful retail base.
Crenshaw, which was founded in 1930, has five Crenshaw stores in the Raleigh-Durham-Chapel Hill area and operates four Ed Kelly's stores in Greensboro, High Point and Winston-Salem.
Terry said Holdren's five stores - Valley View Mall, Vinton, New River Valley, Martinsville and Lynchburg - will continue operating under the Holdren's name.
The new company also will retain the same managers and personnel, Terry said, and customers should see no difference from former operations.
The purchase, he said, gives Holdren's a stronger financial base for doing business.
Holdren's, which must fight for market share against giants such as Circuit City and Wal-Mart, reported a net loss of $1 million on sales of $14 million for its fiscal year that ended March31.
The old company reported a loss of $1.1 million on sales of $18.5 million for the prior fiscal year.
LENGTH: Medium: 63 linesby CNB