Wednesday, February 02, 2000
Roberds dismissing 7 execs
BY LISA BIANK FASIG
The Cincinnati Enquirer
The parent of Roberds Grand has announced the dismissal of several executives and other changes as it proceeds to reorganize under Chapter 11 bankruptcy protection.
The furniture, electronics and appliance chain filed for protection from its creditors Jan. 19 and said it would close the Grand store in Springdale and eight locations in Tampa, Fla. Its stock stopped trading on the Nasdaq Jan. 18 and will not again trade until the retailer meets qualifications for trading on the Nasdaq's Small Cap Market.
Tuesday, Dayton-based Roberds Inc. said seven corporate positions have been or will be eliminated. Those jobs include senior vice presidents of stores; treasurer; chief information officer; and vice president of advertising and marketing.
Several other managers have assumed new or added responsibilities. Melvin Baskin remains as chief executive of Roberds, and Robert Wilson continues as president.
Mr. Wilson confirmed the changes Tuesday. In a statement, Mr. Baskin said the reductions will cut annual costs about $900,000. “This streamlined structure is designed for the new, smaller Roberds,” he said.
Roberds also said Tuesday that it is negotiating with a new lender for debtor-in-possession financing, to replace its existing lending arrangement with BankBoston Retail Finance. The financing is expected to be effective Feb. 10. Until then, Roberds is using cash from its existing line of credit with BankBoston.
Monday, three out-of-state companies said they agreed to enter into a joint venture to liquidate Roberds' nine stores, including the Roberds Grand. Ben Nortman, a spokesman for one of the firms — Hilco/Great American Group — said liquidation of the Grand store will begin Monday. He did not know how long the clearance would take, but said merchandise will not be moved to other Roberds stores in Dayton. Roberds has six stores in Dayton and nine in Atlanta.
Mr. Wilson acknowledged that some of Roberds' suppliers, contractors and landlords had not been paid as of Jan. 19. He said Roberds expects to resume payments and normal retail and promotional activity once its financing is in place.
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