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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT - January 14, 2002
(Date of Earliest Event Reported)
AMES DEPARTMENT STORES, INC.
(Exact name of registrant as specified in its charter)
Commission File No. 1-5380
Delaware 04-2269444
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(State of Incorporation) (I.R.S. Employer Identification No.)
2418 Main Street,
Rocky Hill, Connecticut 06067
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (860) 257-2000
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Item 3. Press Release
On January 14, 2002 the Company issued a press release, a copy
of which is attached.
Item 7. Exhibit.
99.1 Press Release, dated January 14, 2002.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
AMES DEPARTMENT STORES, INC.
Dated: January 14, 2002 By:/s/JOSEPH R. ETTORE
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Name:Joseph R. Ettore
Title:Chairman, Chief Executive Officer
and Director
Dated January 14, 2002 By: /s/ROLANDO DE AGUIAR
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Name:Rolando de Aguiar
Title: Senior Executive Vice President,
Chief Financial Officer and
Administrative Officer
EXHIBIT INDEX
Exhibit No. Description
99.1 Press Release, dated January 14, 2002.
AMES AND CREDITORS COMMITTEE WORK TOWARD PLAN OF REORGANIZATION
Committee expresses satisfaction and confidence with Ames' progress
ROCKY HILL, Conn., January 14, 2002 - Ames Department Stores,
Inc. (OTC: AMESQ) and the statutory Creditors Committee in its
Chapter 11 case announced today that they are working
diligently toward the development of a consensual plan of
reorganization that will enable Ames to emerge from bankruptcy
this year. The joint announcement followed the January 10
meeting of the Company and the Committee, during which the
Committee expressed satisfaction and confidence with the
progress Ames has made to date operating under Chapter 11, its
ability to emerge from bankruptcy and with the excellent
working relationship that has developed between the Company
and the Committee.
Over the last several months Ames has taken a variety
of actions to address its problem areas and to assure its
success as a reorganized entity. Foremost among these has been
its decisive action in closing 151 store locations as well as
one distribution center. The closing of unprofitable stores
together with the contemplated conversion to equity of all of
Ames' obligations to unsecured creditors will contribute
significantly to Ames' restored profitability. As part of its
restructuring, the Company also anticipates that all existing
equity will be cancelled.
Ames also announced the receipt of a proposal from GE
Capital to provide exit financing in connection with
the plan of reorganization. As currently contemplated, a
junior lien will be provided to the vendors that provide
trade credit to the Company after it emerges from
reorganization.
The Company has informed the Committee that it is in
compliance with all financial covenants under its DIP lending
agreements.
Joe Ettore, Ames' Chairman and Chief Executive
Officer, told the Committee: "Ames has had a successful
holiday season in all respects including sales, gross margins,
and earnings. The Chapter 11 process that started 5 months ago
has enabled Ames to close under-performing stores and
streamline operations. It will also permit the Company to
reduce debt and create an attractive balance sheet so that
Ames can excel as a major regional discounter. We are very
pleased by the strong support that some vendors have already
started to provide and look forward to a strong working
relationship with them in the future."
Ames Department Stores, Inc. is a regional, full-line discount
retailer with annual sales over $3 billion. With stores in the
Northeast, Mid-Atlantic and Mid-West, Ames offers
value-conscious shoppers quality, name-brand products across a
broad range of merchandise categories. For more information
about Ames, visit www.AmesStores.com or
www.AmesStores.com/espanol.
To find the location of the Ames store nearest you, dial
1-800-SHOP-AMES.
Cautionary Statement Regarding Forward-looking Information
Statements, other than those based on historical facts which
address activities, events, or developments that the Company
expects or anticipates may occur in the future are
forward-looking statements which are based upon a number of
assumptions concerning further conditions that may ultimately
prove to be inaccurate. Actual events and results may
materially differ from anticipated results described in any
forward-looking statements. The Company's ability to achieve
such results is subject to certain risks and uncertainties.
Consequently, these cautionary statements qualify all of the
forward-looking statements and there can be no assurance that
the results or developments anticipated by the Company will be
realized or that they will have the expected effects on the
Company or its business or operations.