C A M P O
ELECTRONICS, APPLIANCES AND COMPUTERS, INC.
EXHIBIT 99.1
N EW S R E L E A S E
June 4, 1997
CONTACT: Ellie Rand, (504)581-7195, Ext. 212
Mark Romig, (504)581-7195, Ext. 211
FOR IMMEDIATE RELEASE
CAMPO ELECTRONICS, APPLIANCES AND COMPUTERS, INC.
ANNOUNCES SECOND PHASE OF TURNAROUND PLAN
New Orleans (June 4, 1997) - Campo Electronics, Appliances and
Computers, Inc. (NASDAQ/NMS-CMPO) announced today that its Board of
Directors has approved the second phase of its turnaround plan, which
includes filing a voluntary petition to reorganize under Chapter 11
of the U.S. Bankruptcy Code in Federal Bankruptcy Court in New Orleans,
the closing of nine store locations in unprofitable markets, and the
closing of one distribution center to consolidate distribution
activities. Twenty stores, including all New Orleans area locations,
and two distribution centers will remain in operation.
The Company also announced that it has arranged for additional working
capital to help finance the turnaround plan, which will ensure an
adequate supply of inventory, provide for updates to store fixtures and
layouts and the implementation of a new information system. The Company
said that this phase of the turnaround plan is being implemented with
full support from floor plan and bank creditors, which have agreed to
provide certain financial assistance to the Company.
The Company said that it elected to make the filing, which was made
today, to enable it to implement store closings and other elements of
the turnaround plan. The reorganization measures will not adversely
affect the Company's ability to service its customers or provide
extended warranty contracts.
L. Ron Forman, a member of the Board of Directors, said, "This
reorganization is the next step in the Company's turnaround plan" This
turnaround plan began earlier this year when the Board of Directors
accepted Anthony P. Campo's resignation as Chairman and Chief Executive
Officer and, subsequently, appointed Campo President and Chief Operating
Officer, Rex O. Corley, Jr., as acting Chairman and Chief Executive
Officer while it began a national search for a new Chief Executive
Officer.
Last month, the Board announced the retention of financial advisor and
turnaround specialist York Management to help restore the Company to
profitability.
"The Board, with the assistance of its financial advisors, has reviewed
available strategic options and has determined that these actions afford
the Company the best opportunity to return to profitability in the
shortest amount of time," added Forman. "The strategy is to refocus our
resources on our profitable core markets to leverage the Company's
traditional strengths. We have also interviewed a number of excellent
candidates for the CEO position and expect to make our selection within
the next few weeks."
Locations scheduled for closing are: Alexandria, LA, Lafayette, LA,
Tuscaloosa, AL, Jackson, MS, Memphis, TN (2 locations), Chattanooga, TN,
Longview, TX, Texarkana, TX, and a distribution center in Birmingham,
AL.
The Company said that employees affected by store closings would be
relocated or provided severance packages and outplacement assistance.
In addition, the Company said that employees would be paid in the normal
course of business during the reorganization proceeding and that the
Company will seek immediate court approval to pay employee pre-petition
wages, salaries and benefits.
Campo Electronics, Appliances and Computers, Inc. (NASDAQ/NMS-CMPO),
headquartered in the New Orleans metropolitan area, is a specialty
retailer of name brand electronics, major appliances, computers and home
office products which will have 20 stores in the southern United States
after closing nine stores mentioned above.
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109 NORTHPARK BLVD. 5TH FLOOR COVINGTON, LA 70433
504-867-5000