Exhibit 99.1








FOR IMMEDIATE RELEASE

Contact: Edward Cornell
         Executive V.P. & Chief Financial Officer
         Mazel Stores, Inc.
         (440) 248-5200

                      MAZEL STORES SELLS WHOLESALE DIVISION
                      -   $22.3 Million Cash Proceeds
                      -   Strategic Repositioning Completed
                      -   Amended $30 Million Credit Facility - No Term Debt

Cleveland, Ohio (February 12, 2002) - Mazel Stores, Inc. (NASDAQ: MAZL),
announced today the sale of the Company's Wholesale Division to MZ Wholesale
Acquisition, LLC, a newly formed entity that includes Mazel's former Chairman
and Chief Executive Officer, Reuven Dessler. MZ Wholesale purchased the division
for $22.3 million in cash, subject to a post-closing adjustment based on the
Division's audited net worth as of the closing date. The Board of Directors
approved the sale based on the recommendation of a Special Board Committee and a
fairness opinion from Johnson Rice & Company LLC, its investment banker.

Peter Hayes, Chief Executive Officer of Mazel, commented, "With the termination
of VCM, Ltd. on February 1, 2002 and the divestiture of our Wholesale Division
today, we have completed our strategic repositioning to a major regional
closeout retailer. Mazel currently has 76 stores operating under the names "Odd
Job," "Odd Job Trading" and "Mazel's" in eight Mid-Atlantic and Midwestern
states. The two transactions resulted in the receipt by Mazel of approximately
$35 million in cash proceeds, which was utilized to completely pay off the
Company's indebtedness and leaves the Company with a cash balance of
approximately $10 million.

Edward Cornell, Executive Vice President and Chief Financial Officer, added, "As
a result of this transaction, we have amended our credit facility with IBJ
Whitehall Retail Finance, a division of New York based IBJ Whitehall Financial
Group. The amended agreement provides for a $30 million revolving credit
facility that will expire in August 2003. Our net interest expense has been
substantially reduced as a result of paying off our indebtedness, including $9
million of high-cost term loans, and our current $10 million net cash position.
The Company currently anticipates the use of its credit facility to cover
seasonal and potentially large opportunistic inventory purchases. We are pleased
with our amended credit facility and are confident that we have a capital
structure which will enable us to accomplish our short and long-term
objectives."



Peter Hayes continued, "We are now able to focus exclusively on enhancing the
growth and profitability of our retail stores, and we will also be able to do so
from a position of financial strength. We are optimistic that we will
significantly improve our retail performance in the future, and believe the
steps we have initiated will benefit our shareholders, customers and
associates."

Edward Cornell concluded, "As a result of the sale of the Wholesale Division,
the Company will record a one time pre-tax charge estimated to be $5 million in
the fourth quarter of fiscal 2001 to cover costs associated with severance and
other sale related expenses. A $1 million after-tax charge will also be recorded
in the fourth quarter relating to costs associated with the Company's prepayment
of term debt and changes to its credit facility."

Forward-looking statements in this release are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements are subject to certain risks and uncertainties that
could cause actual results to differ materially from those projected. Such risks
and uncertainties include, but are not limited to, (i) the Company's execution
of a plan to restore its retail stores to profitability and the profitability of
its wholesale division; (ii) the ability to purchase sufficient quality closeout
and other merchandise at acceptable terms; and (iii) the ability of the Company
to attract and retain qualified management and store personnel. Please refer to
the Company's SEC filings for further information

Company information is available on the Internet at www.mazelstores.com.