As you are probably aware, on January 20, 1998, Venture Stores filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code to give the company time to continue its strategic repositioning and evaluate other options.
In conjunction with this filing, the company also obtained a new $190 million debtor-in-possession revolving credit facility from its current bank group, led by BT Commercial Corp. This financing will be used to operate Venture's stores and fund purchases of new inventory. The new facility provides for a 65 percent advance rate on all eligible inventories with a $60 million letter of credit sub limit.
We will provide our vendors with as much information as we can, including Weekly Coverage Reports which will be updated every Tuesday by 2:00 p.m.
These reports will be available on our Web site at www.venturestores.com., along with regular updates on our bankruptcy proceedings. You may also call a special information line at 314-281-6469 for up-to-date news and information. Vendors may also contact us via e-mail at [email protected].
All of us at Venture thank our loyal vendors for their continuing support. The coming months promise to present a number of challenges, but we are confident that Venture can emerge as a stronger, viable retailer.