Thursday July 3 8:16 AM EDT

Source: Venture Stores, Inc

Family Value Retailer Selling 20 Stores to Kmart

O'FALLON, Mo.,Venture Stores, Inc. (NYSE:VEN) announced three initiatives today -- including the execution of a definitive contract for the sale of 20 stores in four states -- to improve liquidity and provide a significant cash infusion to support the company's continuing repositioning program:

-- Twenty stores will be sold in six markets to Kmart Corporation (NYSE:KM - news). Included are five stores in Dallas, 10 in Houston, two in Indianapolis and one each in Des Moines, Iowa; Waterloo, Iowa; and Tulsa, Okla. Terms of the sale were not disclosed.

-- Venture will work with Kimco Realty Corporation, a leading real estate investment trust, to capitalize on real estate opportunities. "Venture has significant value in its real estate portfolio, and we will be providing counsel on how to leverage those assets for additional funding and improved shareholder value," said Milton Cooper, Kimco chairman and chief executive officer.

-- Venture has also retained Houlihan, Lokey, Howard & Zukin, an investment banking firm based in New York and Los Angeles, to identify additional potential sources of capital for Venture.

Robert N. Wildrick, chairman and chief executive officer of Venture, said all three initiatives will provide increased financial support and momentum for the company's ongoing repositioning as a family value retailer. Venture, formerly a discount general merchandise chain, has changed its focus to offer an expanded selection of high quality home, family apparel and leisure merchandise at everyday low prices.

``Selling these 20 stores will provide additional capital to continue our multi-year repositioning program with a stronger focus in our traditional Midwestern core markets,'' said Wildrick. ``This effort will be further supported through our new strategic alliances focused on generating additional sources of capital.''

Sale of Stores to be Concluded in July

The sale of the 20 Venture stores to Kmart Corporation is expected to be completed in July, although Kmart will not assume occupancy of the stores until inventory liquidation sales are completed by Sept. 15. Venture will sell 10 of its 13 Houston stores and five of eight stores in Dallas. Venture is also selling two of four stores in Indianapolis, one of two stores in both Tulsa and Des Moines, and its only store in Waterloo. Venture will continue to operate its remaining stores in the multi-store markets. Closing of the Kmart transaction is subject to the satisfaction of customary conditions.

Venture Anticipates Special Charge in Second Quarter

Venture also indicated that it will take a one-time noncash charge of approximately $3.50 per share, in the second quarter of 1997 for costs associated with selling the stores and liquidating inventory.

Venture is discussing an appropriate amendment to its credit facility to accommodate the charge with BT Commercial Corporation, the agent for the facility. BT has advised Venture that, in light of the noncash nature of the charge, an appropriate amendment should be obtained in the ordinary course.

Venture will operate 93 family value stores in nine states, after the sale of the 20 locations is completed. Venture's common stock is traded on the New York Stock Exchange under the symbol VEN.

SOURCE: Venture Stores, Inc

Contact: Cliff Campeau, 314-281-6178 or Tina Schneider, 314-281-6179, both of Venture Stores, Inc.; or Randy Myers or Tom Goyda,

314-436-6565, both of Shandwick

More news for referenced ticker symbols: KM, VEN, and related industries: retail.

Additional news and quotes: Kimco Realty Corp - KIM.