THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Wednesday, October 30, 1996 TAG: 9610300390
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: ASSOCIATED PRESS
DATELINE: RICHMOND LENGTH: 31 lines
Best Products Co. Inc. has decided to close its doors, the company said Tuesday.
The Richmond-based retailer said the investment groups wanting to buy Best's remaining assets have decided against operating any part of the chain as originally contemplated.
The investment groups - Schottenstein Bernstein LLC and Alco Capital Group Inc. - signed a new agreement with Best to buy its assets. The deal must be approved by U.S. Bankruptcy Court.
Under terms of the agreement, going-out-of-business sales will be held at Best's remaining 88 stores and 11 jewelry-only units. The company has three showroom stores and a jewelry store in South Hampton Roads. Liquidation sales are being conducted at 81 other stores, mostly in the western United States, that the chain already had decided to close.
Once all of the liquidation sales are complete - probably by late February - Best will cease to exist.
About 5,500 Best employees, including nearly 500 at its corporate offices in Richmond, will lose their jobs.
Best filed for Chapter 11 bankruptcy protection Sept. 24 - 27 months after emerging from its first visit to bankruptcy court.
Best was founded in 1956. It eventually grew into a $2 billion-plus chain but has been beset by declining sales and profits in recent years. by CNB