The Bargain! Shop announces closing of asset sale transaction

TORONTO, July 15, 2013 /CNW/ - TBS Acquireco Inc., The Bargain! Shop Holdings Inc. and TBS Stores Inc. (collectively, "The Bargain! Shop") announces the completion of the previously announced sale of its assets and business to Red Apple Stores Inc., a wholly owned subsidiary of BlackRock Kelso Capital Corporation ("BlackRock Kelso"). The consummation of the transaction will result in the sale of The Bargain! Shop's business on a going-concern basis and the preservation of approximately 1800 jobs, continued supplier and landlord relationships and continued business activity across Canada.

The Bargain! Shop previously announced the selection of the going concern offer from BlackRock Kelso on June 13, 2013, following completion of a sale and investor solicitation process conducted by Ernst & Young Inc. in its capacity as Court appointed monitor of The Bargain ! Shop (the " Monitor").

A copy of the Court Order approving the transaction and related documents, can be found on the Monitor's website at the following link:  www.ey.com/ca/bargainshop.

Red Apple Stores Inc., a wholly owned subsidiary of BlackRock Kelso Capital Corp, operates a chain of 165 corporately-owned value retail stores, under The Bargain! Shop and Red Apple banners.  Headquartered in Mississauga, The Bargain! Shop and Red Apple stores have proudly served Canadians in neighbourhoods and small communities across Canada, with a longstanding heritage of friendly service, warm store environment and strong neighbourhood connection.   Our general merchandise stores provide a selection of fashion and footwear for the whole family, home, food, health & beauty and everyday essentials, all at great value prices. More information about our banners can be found at www.tbsstores.com or www.redapplestores.com.

SOURCE: Red Apple Stores Inc.

For further information:

Ernst & Young Tower
200 King Street, Suite 1100
P.O. Box 48
Toronto, Ontario M5K 1J7

Attention: Andrew Schaefer
Telephone: [phone]
Facsimile: 416-943-3300
E-mail: [email protected]