- Company to Restructure Operations
SYMBOL: HIS (TSX)
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
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.
Tel: 514-731-0000, Ext. 222
RSM Richter Inc. (Monitor)
Benoit Gingues, CA
Partner, RSM Richter Inc. (514) 934-3514
Stéphane De Broux, CA
Vice President, RSM Richter Inc. (514) 934-8621