NEW YORK -- Jamesway Corp. is expected to file a Chapter 11 plan of reorganization next week and is close to signing a $100 million agreement for financing its operations after bankruptcy. The Secaucus, N.J.-based discounter, which filed for bankruptcy court protection in July 1993, hopes to wrap up the financing within the next two weeks, an official said Wednesday. The company also hopes to emerge from Chapter 11 in October.
One source said Jamesway is negotiating the deal with CIT Group/Business Credit. CIT and Jamesway had no comment on the report.
Same-store sales at Jamesway in the five weeks ended July 2 increased 7 percent from the same period last year, the company noted. Total sales, excluding leased departments, fell 5.2 percent to $70.8 million from $74.7 million last year.
Howard Curd, chairman and acting chief executive officer, said in a statement, "We're beginning to see substantial signs of improving store performance." He attributed the improvements to restructuring of merchandising operations. As reported, Jamesway, with 93 stores currently operating, has closed 15 unprofitable units, focused on higher-margin apparel and remodeled several stores. For the year to date, same-store sales increased less than 1 percent while total sales, excluding leased departments, dropped 10.9 percent to $260.8 million from $292.6 million in 1993.
According to court records, Jamesway will ask the bankruptcy court at a scheduled hearing today for permission to hire an executive search firm to find a new chief executive officer to succeed Joseph P. Ettore, who resigned June 10.
At the same hearing, Jamesway is expected to seek approval for a going-out-of-business sale at its Loudon County, Va., store.
-- Fairchild News Service