The Spiegel Group (Spiegel, Inc.) announced today that a Nasdaq Listing Qualifications Panel made a determination on May 31, 2002, to delist the company's Class A common stock on the Nasdaq National Market System effective with the open of business on June 3, 2002, based on the company's filing delinquencies and other public interest concerns.
The company stated that it intends to and is prepared to file its Form 10-K for the 2001 fiscal year and its first quarter 2002 Form 10-Q upon reaching an agreement with its bank group to restructure its existing credit facilities. Jim Cannataro, executive vice president and chief financial officer for The Spiegel Group stated, "Our discussions are far advanced, the lead banks and the overwhelming majority of the bank group are in favor of the proposed agreement." The company believes that by having the new credit facilities in place prior to filing its financial statements for the 2001 fiscal year, it will receive an unqualified audit opinion from its outside auditor.
The company also stated that its majority shareholder has agreed with the bank group to provide important financial support to the company, and that the company has adequate liquidity to support its day-to-day operations, including making payments to all vendors in a timely manner.
Management of the company said that it will make every effort to seek arrangements to create a liquid market in the stock.
The Spiegel Group is a leading international specialty retailer marketing fashionable apparel and home furnishings to customers through catalogs, nearly 580 specialty retail and outlet stores and e-commerce sites, including eddiebauer.com, newport-news.com and spiegel.com. The Spiegel Group's businesses include Eddie Bauer, Newport News, Spiegel Catalog and First Consumers National Bank. Investor relations information is available on The Spiegel Group Web site http://www.thespiegelgroup.com.
This release contains statements that are forward-looking within the meaning of applicable federal securities laws and are based upon the company's current expectations and assumptions. You should not place undue reliance on those statements because they speak only as of the date of this release. Forward-looking statements include information concerning the company's possible or assumed future results of operations. These statements often include words such as "expect," "plan," "believe," "anticipate", "intend," "estimate," or similar expressions. As you read and consider this release, you should understand that these statements are not guarantees of performance or results. They involve risks, uncertainties and assumptions. Although the company believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect our actual financial results and results of operations and could cause actual results to differ materially from the forward-looking statements. These factors include, but are not limited to, the uncertainty relating to the timing of the disposal of the company's FCNB business and the marketability and value thereof; the uncertainty concerning the outcome of discussions with the company's lenders; increased oversight or restrictions by the OCC on the FCNB business which could reduce the market value of FCNB; the availability of future liquidity support from our majority stockholder; reduction in cash available from the company's securitization transactions; the financial strength and performance of the retail and direct marketing industry; changes in consumer spending patterns; dependence on the securitization of credit card receivables to fund operations; state and federal laws and regulations related to offering and extending credit; risks associated with collections on the company's credit card portfolio; interest rate fluctuations; postal rate increases; paper or printing costs; the success of planned merchandising, advertis ing, marketing and promotional campaigns; and various other factors beyond the company's control.
All future written and oral forward-looking statements made by the company or persons acting on the company's behalf are expressly qualified in their entirety by the cautionary statements contained or referred to above. Except for the company's ongoing obligations to disclose material information as required by the federal securities laws, we do not have any obligation or intention to release publicly any revisions to any forward-looking statements to reflect events or circumstances in the future or to reflect the occurrence of unanticipated events.
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