ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Thursday, September 26, 1996 TAG: 9609260039
SECTION: BUSINESS PAGE: B-8 EDITION: METRO
SOURCE: MEGAN SCHNABEL
Best Products Co. Inc. said in a filing with the Securities and Exchange Commission that it likely will close stores and not pay creditors fully as it attempts to reorganize. The Richmond-based discount chain said late Tuesday it has filed for bankruptcy protection and reorganization.
Best listed assets of $710 million and liabilities of $533.5 million in its petition in federal bankruptcy court in Richmond. Its largest unsecured creditor is Fisher Price Toys, owed $5.4 million.
The company said its 169 stores in 23 states would operate normally for now. No layoffs or store closings were announced, but both are expected. Best operates a store in a company-owned building on Hershberger Road in Roanoke.
The real question now, say analysts, is whether Best can survive beyond Christmas.
Best, which launched its catalog in 1957, is credited with pioneering the catalog showroom concept. This year Best eliminated the catalog, saying it was no longer profitable.
LENGTH: Short : 28 linesby CNB