
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: THURSDAY, August 26, 1993                   TAG: 9308260076
SECTION: BUSINESS                    PAGE: B-7   EDITION: METRO 
SOURCE: Associated Press
DATELINE: HENDERSON, N.C.                                LENGTH: Short

ROSE'S LOOKS AT BANKRUPTCY

Rose's Stores Inc., hit with losses of $11.6 million in the second quarter, may consider Chapter 11 bankruptcy proceedings and outright sale of the company to stay afloat, officials said.

The discount retailer with stores in Western Virginia will not seek Chapter 11 reorganization "unless, in management's judgment, the other alternatives do not serve the best interests of the stockholders," a company statement said.

Rose's is facing a shortage of funds that has left stores short on merchandise, said Lucious Harvin III, chairman of the board.

The company is negotiating for additional short-term financing, but doing so "will require concessions from existing lenders and there can be no assurance such concessions will be obtained," the statement said.

Other alternatives being considered include refinancing Rose's long-term debt, an equity infusion from sale of additional stock, store closings and inventory reductions.

Rose's short-term financing will provide up to $57.4 million this fall, but that will not supply the variety or quantity of items customers will want this Christmas, Harvin said.

Rose's operates 215 stores in 11 Southeastern states and employs 18,000 people, including about 1,500 in its corporate offices, warehouse and two stores in Henderson.

by CNB