HARRIS-USA ANNOUNCES DISPOSITION
OF ITS SUBSIDIARY
COLUMBUS, Ohio, April 21 /PRNewswire-FirstCall/ -- Harris-USA, Inc. (NYSE: RVI)
today announced the disposition of its Filene’s Basement subsidiary to FB II Acquisition Corp., a
newly formed entity owned by the Buxbaum Group. RVI will not realize any proceeds from this
transaction. Filene’s Basement has recently experienced significant liquidity problems. Future
plans for the operation of the Filene’s Basement business are uncertain and will be controlled by
Filene’s Basement and its new owner. Filene’s Basement has retained Pachulski, Stang, Ziehl &
Jones LLP as counsel and Mr. Alan Cohen as Chief Restructuring Officer.
RVI’s guarantee of all of Filene’s Basement’s obligations under its secured credit
agreement, which currently has a balance of $14.2 million, will continue notwithstanding today’s
disposition of Filene’s Basement by RVI. As previously disclosed, RVI has an arrangement with
the lenders under the secured credit agreement pursuant to which RVI has agreed to acquire a $7.5
million Last Out Participation in that secured credit agreement, which is included in the current loan
balance amount referred to above. In connection with the disposition of the stock of Filene’s
Basement, RVI and the lenders under Filene’s Basement’s secured credit facility have entered into
an agreement pursuant to which the lenders will, subject to certain terms and conditions, forbear
from making demand on the RVI guarantee until the lenders, to the extent reasonably possible, have
been able to be repaid by Filene's Basement. There can be no assurance that all of the terms and
conditions to the forbearance agreement, some of which are not within the control of RVI, will be
satisfied and, in addition, RVI does not currently have forbearance agreements with respect to
certain other obligations of Filene’s Basement which RVI has guaranteed.
CONTACT: Larry Peterson, Regional Vice President, Harris-USA +1-888-601-8794
