The Gingiss Group Announces Purchase Agreement
November 03 2003 - 5:34PM
PR Newswire (US)
The Gingiss Group Announces Purchase Agreement ADDISON, Ill., Nov.
3 /PRNewswire/ -- The Gingiss Group, Inc., (Gary's Operating, Inc.,
GII Acquisition, Inc., and Gingiss Formalwear, Inc.) has entered
into an Asset Purchase Agreement with After Hours Formalwear, Inc.,
("After Hours"), an affiliate of The May Department Stores Company,
Incorporated . Pursuant to this agreement, the above entities are
selling to After Hours intellectual property including but not
limited to the rights to the names "Gingiss Formalwear" and "Gary's
Tux Shop," 125 company operated stores, and related inventory and
personal property for $23 million subject to certain adjustments.
Concurrently, The Gingiss Group, Gary's Operating, Inc., GII
Acquisition, Inc., Gingiss International, Inc. and Gingiss
Formalwear, Inc. (collectively, the "Company") filed voluntary
petitions for relief pursuant to Chapter 11 of the United States
Bankruptcy Code in the United States Bankruptcy Court for the
District of Delaware (the "Bankruptcy Court"). The Company has
requested that the Bankruptcy Court approves certain sale
procedures that will govern an auction at which the Company will
solicit qualified competitive bids. Such auction is anticipated in
early December 2003, with a closing to occur shortly thereafter.
The Company has also obtained a commitment from its existing
secured lender to provide debtor in possession financing with which
to sustain operations. Mark Syrstad, the Company's Chief Executive
Officer, said: "We are pleased that we were able to reach agreement
with After Hours and to secure financing that will allow us to
continue operations. We believe that the transaction maximizes
value for all creditor constituencies, will preserve jobs, and will
provide for continued outstanding service to our customers." The
Company emphasizes its commitment to its customers and to
maintaining the level of service and customer satisfaction for
which it is known. To that end, an information line has been
established for brides and grooms currently registered with the
Company's stores. That number is 800-621-7125. The Company operates
236 company owned stores under the names "Gingiss Formalwear" and
"Gary's Tux Shops," and is the only national chain of retail stores
specializing in the rental and sale of formalwear. The Company
maintains distribution centers in Boston, Chicago, Fort Lauderdale,
Honolulu Los Angeles, and Seattle, and maintains its corporate
offices in Addison, IL. DATASOURCE: Gingiss Group, Inc. CONTACT:
Michael Corrao of Gingiss Group, Inc., +1-630-620-9050, ext. 215
Web site: http://www.gingiss.com/
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