Jay Jacobs Taps Minneapolis Liquidator to Handle Going-Out-of-Business Sales; Consumers Can Expect Unprecedented Sales; Employees Will be Offered Bonuses and Job Placement Assistance

Business Wire, Sept 16, 1999

MINNEAPOLIS--(BUSINESS WIRE)--Sept. 16, 1999--

Universal Capital Group announced today that it has been retained to handle the going-out-of-business sales for 105 Jay Jacobs retail outlets in 23 states.

Seattle-based Jay Jacobs is a specialty retailer of private label fashion apparel targeting the 18-34 year old market.

Mike Catain, Universal Capital Group President and COO, said "It is truly unfortunate that Jay Jacobs, with a rich heritage spanning 58 years in apparel retailing, finds itself in the position of having to liquidate. We are, however, confident that we can assist them in efficiently handling the liquidation process. Universal's job is two-fold: one, to liquidate all merchandise as quickly as possible and two, equally important, ease the transition for the fine associates at Jay Jacobs, many of whom have been employed by the retailer for years."

Universal said that it is currently readying the stores for the large crowds expected during the sales. Merchandise is being marked down and shoppers can expect deep discounts on all fashion apparel and accessories.

"Jay Jacobs going-out-of-business sale presents an excellent opportunity for back-to-school and fall season shoppers, as well as early holiday bargain hunters. Consumers won't be disappointed with the great bargains offered and should come in early for the best selection," said Catain.

Company officials said that they have retained a number of store employees to handle the going-out-of-business sales and that the Company will provide job placement assistance for those employees that are retained to handle the store closing process. The Company will hold job fairs in some cities for interested prospective employers and will make those announcements locally.

"Closing down a store is a difficult process for employees. Our role is to help them find gainful employment once the closing is complete. As a liquidator, we have had years of experience helping associates secure new employment. With such a robust U.S. economy and low unemployment rate, we are confident that we will be able to assist the associates at Jay Jacobs in finding new employment opportunities," Catain concluded.

The going-out-of-business sale is a co-venture with Fox Promotions, a Cranford, N.J.-based company specializing in inventory liquidation. Fox has handled several other large liquidation sales including the closing of Sycamore Stores, a 140-store retailer based in Indianapolis.

"Over the past 20 years, we've handled more than 2,000 liquidations and that's one reason Universal Capital engaged in a co-venture with Fox," said Rick Mareck, Fox President.

Catain said, "Universal Capital's success in managing large inventory liquidations is evident in the number of liquidation sales that we have recently conducted. Since last fall, Universal has managed inventory liquidations for several well-known retail chains, including Sun Television and Appliances, once a 59-store chain operating in eight states; LOT$OFF, a 45-store chain operating in five states; MJDesigns, a 35-store specialty retailer of arts and crafts merchandise; Three D Bed & Bath, a 13-store specialty retail chain selling home textiles, decorative housewares and other home fashion items; and now for Jay Jacobs."

Organized in 1996, Minneapolis-based Universal Capital Group is an established full-service retail consultant serving both retail management and asset-based lenders. Universal provides a variety of services including strategic store analyses, inventory evaluation, collateral monitoring and inventory liquidation. Universal also provides a mezzanine financing service to assist lenders and businesses with their funding and liquidity needs. The Company has handled liquidations in hundreds of locations throughout the United States, representing more than $500 million in merchandise sales.

For further information about the services that Universal Capital Group provides, please contact Michael Catain, Universal Capital Group President and COO at (612) 541-8111, fax your request to (612) 541-9111 or send an e-mail to mcatain@ucgllc.com.

Calls concerning sale promotions and advertising should be directed to Beth Reynolds @ (713) 977-3778

Media calls should be directed to Melodye Demastus, at Melrose Consulting (614) 771-0860 or (614) 579-9192; email: mdemastus@netwalk.com

Editors' Note: A list of all the closing locations is attached. -0-