Fishers Big Wheel to close 10 units; chain files Ch. 11 petition; revamps executive staff

Discount Store News, August 2, 1993

Chain Files Ch. 11 Petition; Revamps Executive Staff

NEW CASTLE, Pa. -- Fishers Big Wheel has received bankruptcy court approval to close 10 of its 65 stores as the first step toward restructuring under the Chapter 11 bankruptcy petition filed last month.

The United States Bankruptcy Court for the District of Delaware has approved going out of business sales for the 10 stores and stipulated that they must be concluded by about the end of September, said Mitchell Perkiel, a partner for the New York law firm of Kaye, Scholer that is representing Fishers. The 10 store locations are: Willimantic, Conn.; Saint Marys, Pa.; Auburn and Warsaw, Ind.; Coshocton and Jackson, Ohio; Hillsdale, Lapeer and Prudenville, Mich.; and Westerly, R.I.

The two Indiana stores are the only units that Fishers operates under the name Buy-$Mart, while the rest use the Fishers Big Wheel name.

Faced with an onslaught of new 110,000-sq.-ft. Wal-Mart stores in its key operating states of Ohio, Michigan and Pennsylvania, Fishers has been slowly whittling down store count since the 1990 high of 93. Its stores range in size from 37,000 sq. ft. to 55,000 sq. ft., or half that of the new Wal-Marts. Fishers has been trimming store count in states where it operates the most stores, Ohio, 23, down from 32 in '91; and Michigan, 17, down from 26.

In Pennsylvania the chain opened a store in 1992, in Altoona, for a year-end count of 11. (Value City is closing its Gee Bee store in Altoona.) Fishers operates three stores each in New York and Connecticut, three Big Wheel stores in Indiana and two in West Virginia.

In May, Fishers was down to less than $500,000 in cash and has been experiencing difficulty in getting vendors to ship merchandise.

The filing lists $39.8 million in unsecured claims from 11,000 creditors.

Fishers said in a brief statement that it has secured $3 million in interim Debtor in Possession financing and is seeking court approval for as much as $15 million.

The bankruptcy filing followed a restructuring at the end of May that saw president and chief executive officer Robert Floum leave. Rather than replace him, Fishers created an office of the president to run the company.

The four-man office includes: Barry Gold, vice chairman and chief administrative officer; Albert Agostinelli, executive vp and cfo; J. Richard Abraham, senior vp, non-apparel and business strategy development; and Andrew Hess, son of chairman Marshall Hess, executive vp, apparel.

Robert Lyle, previously executive vp, store operations, also left Fishers and has not been replaced. Instead, Robert Povirk, director of operations, assumed Lyle's responsibilities.

"The very difficult decision to file was made after it was determined that sufficient progress toward an out-of-court restructuring could not be accomplished in a timely manner," Fishers said.

In its filing, Fishers listed total assets of $97 million against liabilities of $141.5 million. The list of its 26 major unsecured creditors shows Fishers owes state and county government agencies $24.5 million for the bonds they hold.

Major trade creditors include: American Yard Products, $761,617; American Greetings, $444,402; Tatung Co. of America; $277,959; Emerson Radio, $240,731; Action Industries, $237,564;, GTE Sylvania, $170,464; Nelson Weatherite, $162,311; Gitano, $138,894; and Lifetime Products, $129,956.

In addition, three landlords have sued Fishers for $487,039 in unpaid rent. All but six Fishers stores, including the 10 it is closing, are leased. Of the six stores it owns, it has closed three, but leased one of these to Quality Farm & Fleet.

Other pending legal actions include about 120 personal injury lawsuits and workmen's compensation claims.

On its consolidated balance sheet, Fishers listed liabilities totaling $107.5 million as of May 1, 1993, including $48 million in long-term debt and $14 million in stockholder equity.

It showed cash on hand of $487,000 and inventories valued at $64.7 million.

In the 30 days ending Aug. 7, Fishers estimated it will take in $17.1 million in revenues and spend $18.3 million.

Fishers' sales fell 17.4% last year to $317 million from $387 million in 1991. Its operating loss worsened to $14 million from $1.4 million.

Fishers is a privately held company, with 100 stockholders.