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 (DATE OF EARLIEST EVENT REPORTED): FEBRUARY 17, 1994
-------------------
(FEBRUARY 17, 1994)
AMES DEPARTMENT STORES, INC.
(Exact Name of Registrant As Specified In Its Charter)
DELAWARE
(State Or Other Jurisdiction Of Incorporation)
1-5380 04-2269444
(Commission File Number) (IRS Employer Identification No.)
2418 MAIN STREET; ROCKY HILL, CONNECTICUT 06067-0801
(Address Of Principal Executive Offices) (Zip Code)
(203) 257-2000
(Registrant's Telephone Number, Including Area Code)
NOT APPLICABLE
(Former Name Or Former Address, If Changed Since Last Report)
Exhibit Index on Page 4
Page 1 of 8 (Including Exhibit)
ITEM 5: OTHER EVENTS
Beginning on February 17, 1994, Ames Department Stores, Inc. ("Ames"
or the "Company") will distribute, to certain of its banks, potential
lenders, principal trade vendors and factors, summaries of its
financial plan (referred to herein as the "Plan") for the fiscal year
ending January 28, 1995 ("Fiscal 1995"). The Plan is attached hereto
as Exhibit 20 and is incorporated by reference herein. The Plan
assumes, among other things, that the same financing terms that are
effective under the Company's current credit agreement, including the
required cash collateralization of outstanding letters of credit,
will remain effective for all of Fiscal 1995. The current credit
agreement expires on December 28, 1994 and the Company has started
discussions to obtain long-term financing that would extend beyond
that date.
As reported in a press release on January 28, 1994, there was a
partial roof collapse on that date at the Company's distribution
center in Leesport, PA. The collapse involved approximately 10,000
square feet of the total 1.2 million square feet in the facility. On
February 11, 1994, there was a further 20,000 square foot collapse of
the roof in an area immediately adjacent to the first collapse. The
Leesport facility remains closed while the extent of the damage is
assessed and pending determination of what remedial steps are
required with regard to the roof. The Company has obtained temporary
warehouse space within a short distance from Leesport and is also
operating additional shifts at its other distribution centers in
Mansfield and Clinton, MA. The Company believes that these steps
will enable it to provide an adequate supply of merchandise to its
stores in the immediately foreseeable future. As a result of the
closing of the Leesport facility, the Company may experience an
increase in its short- term borrowings for a brief period of time as
it repurchases certain inventory that is temporarily not removable
from Leesport (see also footnote (A) - Page 7). While the
investigation into the Leesport situation in still in its early
stages, the Company currently believes that a substantial portion of
any damages and any incremental expenses it may incur should be
recoverable. The net financial effect from the Leesport situation is
not yet determinable. The Plan does not reflect any financial effect
as a result of the roof damage at the Leesport facility.
Ames is distributing the Plan to its banks, potential lenders,
principal trade vendors and factors to facilitate their credit
analyses. The Plan SHOULD NOT BE RELIED UPON FOR ANY OTHER PURPOSE
and should be read in conjunction with the Company's Form 10-K for
the fiscal year ended January 30, 1993, the Company's most recent
Form 10-Q for the quarter ended October 30, 1993, and the Company's
Form 10-K to be filed for the fiscal year ended January 29, 1994.
The Plan is being reported publicly solely because it is being
distributed to a large number of the Company's vendors for purposes
of their credit analyses.
Page 2 of 8
Although Ames is publishing the Plan and currently expects to report
its monthly results during Fiscal 1995, Ames does not believe it is
obligated to provide such information indefinitely, other than as
required by applicable regulations, and may cease making such
disclosures and updates at any time. Moreover, Ames does not believe
that it is obligated to update the Plan to reflect subsequent events
or developments.
The Plan was not prepared with a view toward compliance with the
guidelines established by the American Institute of Certified Public
Accountants or the rules and regulations of the Securities and
Exchange Commission regarding financial projections. While presented
with numerical specificity, the Plan is based upon a variety of
assumptions that may not be realized and is subject to significant
business, economic and competitive uncertainties and contingencies,
many of which are beyond the control of Ames. Consequently, the Plan
should not be regarded as a representation or warranty by Ames, or
any other person, that the forecasts contained therein will be
realized. Actual results may vary materially from those presented in
the Plan.
In its Form 10-Q for the quarter ended October 30, 1993, the Company
reported that it and its independent accountants were in discussions
with the staff of the Securities and Exchange Commission
regarding their review of the Company's applications of the
American Institute of Certified Public Accountants Statement of
Position 90-7 ("SOP 90-7"). Those discussions have now concluded and
the Company will not amend its applications of SOP 90-7 as a result
of such discussions.
ITEM 7: FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
Exhibit: 20 Fiscal 1995 Summary Financial Plan
Page 3 of 8
INDEX TO EXHIBITS
EXHIBIT NO. EXHIBIT PAGE NO.
20 Fiscal 1995 Summary Financial Plan 6
Page 4 of 8
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 thereunto duly authorized.
AMES DEPARTMENT STORES, INC.
Registrant
Dated: February 17, 1994 By: /s/ Peter Thorner
--------------------------
Peter Thorner
President, Chief Operating
Officer and Director
Dated: February 17, 1994 By: /s/ William C. Najdecki
--------------------------
William C. Najdecki
Senior Vice President,
Chief Accounting Officer
Page 5 of 8