THE VIRGINIAN-PILOT 
              Copyright (c) 1996, Landmark Communications, Inc.

DATE: Friday, February 9, 1996               TAG: 9602090496
SECTION: BUSINESS                 PAGE: D1   EDITION: FINAL 
SOURCE: BY STEPHANIE STOUGHTON, STAFF WRITER 
                                             LENGTH: Medium:   60 lines

SRUGGLING BEST TO REPLACE CHIEF EXECUTIVE KASEN'S DEPARTURE WAS "MUTUAL"

With losses stacking up, struggling retailer Best Products Co. on Thursday announced plans to replace its chief executive.

Stewart M. Kasen, who's also the president and chairman, has agreed to stay with the Richmond-based home products and jewelry retailer during the search and transition periods, spokesman W. Edward Clingman said. The decision, he said, was ``mutual.''

In an unrelated announcement Thursday, Best Products said it had obtained a new $300 million credit line with CIT Group/Business Credit Inc. It replaces a $150 million revolving credit line with a group of banks, with Bankers Trust Co. serving as the agent.

Best Products' troubles go back to 1991, when it filed for Chapter 11 bankruptcy protection. It emerged from bankruptcy in June 1994.

But the chain, which has four stores in South Hampton Roads, said it expected to post a loss for the 1996 fiscal year, ended Feb. 3. It said disappointing holiday sales could not offset about $21 million in losses during the first three quarters of the fiscal year. The company has not yet released its fiscal 1996 results.

Best officials blamed the losses on consumers tightening their spending as the economy tapped on its brakes. They also pointed to slower sales of consumer electronics and other product groups.

The search for a new chief executive should take three to six months, Clingman said. But it wasn't immediately clear whether the new CEO also would take on the president and chairman duties.

``Stewart has guided the company through a very challenging period,'' said Donald D. Bennett, a company director. ``He has earned the appreciation and respect of the board and the company's stockholders. We appreciate his agreement to stay on and work with us during this transition.''

Kasen has served as chief executive and president since June 1991 and was elected chairman in January 1994.

Best Products sells jewelry and home products in a catalog showroom environment. It operates 175 Best stores, 11 Best Jewelry stores and a nationwide mail-order service. It has stores in Virginia Beach's Pembroke area, Chesapeake's Greenbrier section and Norfolk's Military Highway corridor. It also operates a Best Jewelry store in Greenbrier Mall. ILLUSTRATION: Photo

Best Products expects to report a loss for the fiscal 1996 ended

Feb. 3. During the first three quarters of the fiscal year, it lost

$21 million.

The company emerged from Chapter 11 bankruptcy in June 1994.

Based in Richmond, Best sells jewelry and home products in a

catalog showroom environment. It has 175 Best outlets, 11 Best

Jewelry stores and a nationwide mail-order service. It has four

stores in South Hampton Roads.

by CNB