The Virginian-Pilot 
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1996, Landmark Communications, Inc.

DATE: Tuesday, October 8, 1996              TAG: 9610080332
SECTION: BUSINESS                PAGE: D1   EDITION: FINAL 
SOURCE: BY STEPHANIE STOUGHTON, STAFF WRITER 
                                            LENGTH:   43 lines

BEST CLOSING NEARLY HALF OF ITS STORES RETAILER NOT PLANNING TO CLOSE ANY OUTLETS IN HAMPTON ROADS.

Best Products Co. Inc., the home products and jewelry retailer that filed for bankruptcy last month, said Monday it would close nearly half its stores and dismiss 4,500 employees.

The Richmond-based company said it did not plan to shutter stores in South Hampton Roads, which always has been a good market for Best Products. The company has three outlets and one jewelry store in the region.

Still, local shoppers may feel the impact of the retailer's bankruptcy, a retail analyst said.

``There will be some major brand names missing from Best Products,'' said Kenneth M. Gassman Jr., a retail analyst with Davenport & Co. of Virginia in Richmond.``Some vendors have said that they won't ship to Best under any circumstances.''

But Best officials think they have enough money to stock their stores. Company executives said last week that Best Products has court approval to use $195 million in financing to resume operations.

But $195 million wasn't enough to feed all of Best Products' 169 stores, which explains why the company announced plans Monday to close nearly half of its outlets, Gassman said.

Best will close 81 stores in 19 states, mainly in California, Colorado, Oregon, Texas and Washington. The only Virginia store to close will be in Springfield.

Best also will shutter three of its four distribution centers. All of the closings will take place within several months.

``We regret that many dedicated associates who have worked diligently on behalf of Best Products are affected by this decision,'' said Daniel H. Levy, Best chairman and chief executive officer. ``However, we have carefully studied our business, and we do not believe these locations will contribute significantly to the company's future profitability.''

Best filed for protection from its creditors under Chapter 11 of the bankruptcy code in Richmond. It was the second time that the retailer has sought to reorganize its debts under court supervision.

Best filed for Chapter 11 the first time in 1991 and emerged from bankruptcy in 1994. by CNB