Gitano files for bankruptcyGitano Group Inc. yesterday...


March 02, 1994

Gitano files for bankruptcy

Gitano Group Inc. yesterday filed for Chapter 11 bankruptcy protection after agreeing to sell its assets to Fruit of the Loom Inc. for $100 million, $30 million less than the marketer of jeans and casual clothing owes its major creditors. Gitano put itself on the auction block last month after its main customer, Wal-Mart Stores Inc., refused to do business with the beleaguered company.

Judge blocks hearing on Viacom

Viacom Inc. got what may be the final green light yesterday in its $10 billion quest to acquire Paramount Communications Inc., when a Delaware judge rejected a request by Blockbuster Entertainment Corp. shareholders for an emergency hearing to try to block the company's $1.25 billion infusion into Viacom Inc. The decision came on the same day that Viacom's tender offer for Paramount Communications Inc. was to expire.

Pa. firm to run Hechinger unit

Hechinger Co., the Landover-based chain of home improvement stores, will turn the operation of its distribution center over to a Pittsburgh company, a move that will affect 160 workers. The change, which is scheduled to occur early next month, will save the company about $1 million a year, the company said. Most of the 160 employees will be hired by the new contractor, Genco Distribution Systems. But Hechinger did not know how many may lose their jobs.

Home Depot seals Canadian deal

Home Depot Inc. solidified its plans to expand into Canada by announcing yesterday that it completed a deal with Molson Cos., in which Home Depot will pay $160 million for 75 percent of a new partnership. Molson, a diversified Canadian company with brewing, retail and other businesses, has a 25 percent interest in the partnership, named Home Depot Canada.

Sales of existing homes slip

Sales of existing homes slipped 3 percent in January, to 4.22 million at a seasonally adjusted annual rate from December's record 4.35 million, the National Association of Realtors reported yesterday. Every region in the nation posted declining sales, including the West, where analysts said the effects of the Los Angeles earthquake had offset more temperate temperatures.

Bentsen suggests bank fees

Treasury Secretary Lloyd Bentsen suggested to the Senate Banking Committee yesterday that federal examination fees be charged to large state-chartered institutions to pay for the consolidation of bank regulatory agencies. The administration plan would raise $50 billion in fees to fund a single consolidated federal banking agency.

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