Hart Stores Announces CCAA Filing

- Company to Restructure Operations

SYMBOL: HIS (TSX)
www.hartstores.com

LAVAL, QC, Aug. 30, 2011 /CNW Telbec/ - Hart Stores Inc. (TSX: HIS) announces that in order to restructure its operations, it today obtained an Initial Order from the Québec Superior Court under the Companies' Creditors Arrangement Act (Canada).  The Court granted Hart Stores protection under the CCAA for an initial period expiring on September 29, 2011, to be extended as required and approved by the Court.  While the Company is under CCAA protection, all proceedings on the part of its creditors are stayed.  Hart Stores believes that restructuring under the CCAA will provide the Company with the best opportunity to develop a viable business plan to ensure successful operations in the future.

The Initial Order also authorizes Hart Stores to borrow an amount of up to $20 million from Wells Fargo Capital Finance Corporation Canada, the Company's current secured lender, pursuant to the terms of a DIP commitment letter, in order to finance the Company's liquidity needs during the restructuring period.  Advances made under the DIP facility will be secured by a court-ordered charge over all of Hart Stores' assets.  No further advances will be made under the Company's existing credit facility with Wells Fargo.  The funding will assure the availability of funds for payment to all employees of the Company and to suppliers who deliver goods and services to the Company subsequent to the issuance of the Initial Order.  The terms and conditions of the restructuring plan have not yet been determined by Hart Stores.

All of the Hart Stores locations remain open for business.

RSM Richter Inc. has been appointed Monitor pursuant to the Initial Order.  All inquiries regarding the CCAA proceedings affecting Hart Stores should be directed to the Monitor.  A copy of the Initial Order will be made available and may be viewed on the Monitor's website at http://www.rsmrichter.com/restructuring/HartStores.aspx.

About Hart Stores Inc.:
Hart Stores Inc. operates a network of 92 mid-sized department stores under the Hart, Bargain Giant and Géant des Aubaines banners. The stores are located in secondary and tertiary markets throughout Eastern Canada where the Company has established a dominant position in many of the communities that it serves.  The stores offer an extensive and differentiated selection of national and exclusive fashion apparel brands as well as family footwear, home furnishings, giftware, toys and seasonal goods.

Forward-Looking Statements and Disclaimer
Certain statements included in this press release may constitute "forward-looking statements" within the meaning of the Canadian securities legislation.  Forward-looking statements are based on the best estimates available to Hart Stores at the time and involve known and unknown risks, uncertainties and other factors that may cause Hart Stores' actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.  A description of the risks affecting Hart Stores' business and activities appears under the heading "Risks & Uncertainties" in Management's Discussion and Analysis on pages 18 to 20 of Hart Stores' 2011 Annual Report, which is available on SEDAR at www.sedar.com.  No assurance can be given that any events anticipated by the forward-looking information in this press release will transpire or occur, or if any of them do so, what benefits that Hart Stores will derive therefrom.  In particular, no assurance can be given as to the future financial performance of Hart Stores.  Undue reliance should not be placed on these forward-looking statements, which are made only as of the date of this press release. Hart Stores disclaims any intention or obligation to update or revise any forward-looking statements in order to account for any new information or any other event.

SOURCE HART STORES INC.

For further information:

Hart Stores Inc.

Rick Leckner
MaisonBrison Communications
Tel: 514-731-0000, Ext. 222

RSM Richter Inc. (Monitor)

Benoit Gingues, CA
Partner, RSM Richter Inc. (514) 934-3514
bgingues@rsmrichter.com

Stéphane De Broux, CA
Vice President, RSM Richter Inc. (514) 934-8621
sdebroux@rsmrichter.com

Organization Profile

HART STORES INC.

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