PETRIE PLANS TO SHUT 104 STORES
NEW YORK — Petrie Retail Inc. plans to close 104 of its 994 stores.
The units to be closed are in the struggling core Petrie chain. After the closings, set to start in late April, there will be 306 Petrie stores. The company also operates 407 G+G/Rave and 61 Winkelman’s stores.
Petrie, which had 1,623 stores when it filed for bankruptcy in October 1995, also said it completed a $96 million debtor-in-possession refinancing with Chase Manhattan Bank through April 1999.
In addition, the retailer said it is asking bankruptcy court to extend its exclusive right to file a reorganization plan through April 1998.
The DIP financing is backed by a $50 million letter of credit provided by an affiliate of E.M. Warburg, Pincus LLC, the major equity holder in Petrie. Also, Petrie has sold the charge-card receivables of the Winkelman’s chain to Shoppers Charge Accounts Co., a division of Hudson United Bank of Mahwah, N.J.