Homeland Stores, Inc.
400 N.E. 36th Street
Oklahoma City, Oklahoma 73125
For Immediate Release
For: Homeland Stores, Inc. Contact:Mark S.
Sellers
(405) 557-5861
Homeland Receives Requisite Consent In
Connection With Consent Solicitation
OKLAHOMA CITY, OK, April 13, 1995 - - Homeland Stores, Inc.
announced today that the consent solicitation relating to its
Series A Senior Secured Floating Rate Notes Due 1997, Series C
Senior Secured Fixed Rate Notes Due 1999 and Series D Senior
Secured Floating Rate Notes Due 1997 has expired pursuant to its
terms. Prior to such expiration, Homeland received consents in an
amount sufficient to approve the proposed amendments described in
its consent solicitation statement, dated April 4, 1995.
Homeland is the leading supermarket chain in Oklahoma,
southern Kansas and the Texas Panhandle region with an estimated
1994 market share of 27 percent in its market areas.
For: Homeland Stores, Inc.
Contact: Homeland Contact: AWG
Robert Mead (212) 484-6701 Beth Danes
Lisa Sykes (405) 557-5549 (913) 321-1313
ext.1324
HOMELAND COMPLETES SALE OF 29 STORES AND WAREHOUSE
OPERATIONS TO ASSOCIATED WHOLESALE GROCERS
Announces Appointment of Larry Kordisch as Chief Financial Officer
OKLAHOMA CITY, OK (April 24, 1995) - Homeland Stores, Inc.
announced today that it has completed its previously announced
sale of 29 of its stores and its warehouse complex to Associated
Wholesale Grocers, Kansas City ("AWG").
Under the terms of the sale, AWG paid Homeland $45 million plus
value of inventory in the warehouse and 29 stores. Homeland had
announced an agreement in principle for the transaction with AWG
in November of 1994 as part of its operational restructuring.
Also as part of the agreement, Homeland entered a strategic
partnership with AWG - a long-term supply agreement for its
remaining 75 stores that provides Homeland the lowest prices and
most favorable terms available through the AWG system on the
purchase of products and services.
"This is a positive step in Homeland's operational restructuring,
one which allows us to reduce our debt burden and fixed operating
costs, " said James Demme, President and Chief Executive Officer
of Homeland. "The strategic partnership with AWG makes Homeland
more competitive by increasing our buying power and allowing us
to focus on our core business. We are also able to pass the
savings from our preferred purchasing relationship on to our
customers."
Homeland also said that it has refinanced its bank indebtedness
with a $25 million credit facility from a consortium of banks led
by National Bank of Canada.
The Company also announced that Larry Kordisch has been appointed
Executive Vice President-Finance and Chief Financial Officer,
Effective May 7, 1995. The Company said that Mr. Kordisch will
replace Mark Sellers, who is resigning to pursue other interests,
as Chief Financial Officer. Mr Kordisch was most recently
Executive Vice President of Finance and Administration and Chief
Financial Officer of Scrivner, Inc.
Mr. Demme said, "I worked with Larry at Scrivner and am pleased
that he is joining us at Homeland. He brings a great deal of
experience and skill to the Company and I look forward to working
very closely with him."
AWG is the second-largest retailer-owned buying cooperative and
the fifth largest grocery wholesaler in the country with more
than $2.6 billion in revenues. AWG has 735 independent retail
stores as members of its supply cooperative. The acquisition of
the 29 Homeland stores and Homeland's joining of the AWG
cooperative will bring that total to 839 in ten states. With the
addition of Homeland's sales, AWG's 1995 revenues are expected to
exceed $3 billion.
With 75 stores, Homeland is the leading supermarket chain in
Oklahoma, southern Kansas and the Texas Panhandle region.