ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Saturday, October 12, 1996 TAG: 9610140026
SECTION: BUSINESS PAGE: A-6 EDITION: METRO
DATELINE: RICHMOND
SOURCE: Associated Press
Two investment groups that specialize in retail liquidations will buy most of Best Products Co.'s assets for $395 million.
The sale, announced late Thursday, is expected to keep Best Products in business through Christmas. The catalog showroom chain filed 2 1/2 weeks ago for Chapter 11 bankruptcy protection, its second such filing in five years. The company operates one store in Roanoke.
``This gives Best at least a fighting chance for survival,'' said Kenneth M. Gassman Jr., an analyst with Davenport & Company of Virginia Inc.
However, Gassman said the sale was ``what you do in a liquidation, not a reorganization. The Best we've known for 40 years - that era ended today.''
The buyers said they intend, at least initially, to operate the acquired 88 showrooms and 11 jewelry stores from Best Product's Richmond headquarters.
The sale will include proceeds from liquidating 81 stores that the company said Monday would be closed. If a final agreement is approved by the U.S. Bankruptcy Court, the transaction would be completed before Thanksgiving.
``We believe this agreement is in the best interests of Best Products' associates and creditors,'' said Best Products Chief Executive Officer Daniel H. Levy. ``It may allow the Chapter 11 case to be completed more quickly than originally anticipated, provide continuing employment possibilities and give continuing stores their best opportunity to return to profitability.''
The buyers are Schottenstein Bernstein Capital LLC and Alco Capital Group Inc. Schottenstein Bernstein is a Columbus, Ohio-based liquidation company that operates Value City Department Stores and several Midwestern shopping centers. Alco Capital Group is a New York-based liquidation firm.
In its bankruptcy filing, Best Products listed assets of about $710 million and liabilities of $533.5 million.
LENGTH: Short : 43 linesby CNB