ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Wednesday, October 30, 1996 TAG: 9610300065
SECTION: VIRGINIA PAGE: C-1 EDITION: METRO
DATELINE: RICHMOND
SOURCE: Associated Press
Best Products Co. Inc. has decided to close its doors, a decision that the company's chairman described Tuesday as ``the worst downer that you can ever experience in life.''
The Richmond-based retailer, which has a store on Hershberger Road in Roanoke, said the investment groups wanting to buy Best's remaining assets have decided against operating any part of the chain as originally contemplated.
The investment groups - Schottenstein Bernstein LLC of Columbus, Ohio, and Alco Capital Group Inc. of New York - signed a new agreement with Best to buy its assets for $410 million. The deal must be approved by U.S. Bankruptcy Court.
A hearing is scheduled for Nov. 19 in Richmond.
Under terms of the agreement, going-out-of-business sales will be held at Best's remaining 88 stores and 11 jewelry-only units. Liquidation sales are being conducted at 81 other stores, mostly in the western United States, that the chain already had decided to close.
Once all of the liquidation sales are complete - probably by late February - Best will cease to exist.
About 5,500 Best employees, including nearly 500 at its corporate offices in Richmond, will lose their jobs.
Daniel Levy, who was hired as Best's chairman and chief executive officer in April to rescue the chain, said business realities made Best's continued operation impractical.
``I don't like to throw in the towel ... but it became clear that this action was the better alternative for the company and its creditors,'' Levy said. ``It became too complicated, too difficult and too expensive for [the investment groups] to run the stores.''
Best filed for Chapter 11 bankruptcy protection Sept. 24 - 27 months after emerging from its first visit to bankruptcy court.
The former catalog-showroom retailer was founded in 1956. It eventually grew into a $2billion-plus chain but has been beset by declining sales and profits in recent years.
Best has been trying to remake itself into a home-furnishings and jewelry store. In the last year, Best abandoned its catalog, closed stores and hired Levy.
Analysts said Levy came too late to save the chain. ``As good a merchant as Levy is, he was brought in too late by the board - the company had gone too far downhill,'' said Kenneth Gassman of Davenport & Co. in Richmond.
The Washington Post contributed to this report.
LENGTH: Medium: 56 lines KEYWORDS: JOBCHEKby CNB