Carpet Fair files under Chapter 11Carpet Fair Inc., a...

BUSINESS DIGEST

October 12, 1994

Carpet Fair files under Chapter 11

Carpet Fair Inc., a Baltimore-based chain of 25 stores, filed yesterday for reorganization under Chapter 11 of the Bankruptcy Act.

The company is in essentially "sound" financial condition, with no debt secured by its cash, inventory or accounts receivable, but was forced to seek protection when Mercantile-Safe Deposit & Trust Co. terminated its unsecured line of credit, said Paul M. Nussbaum, the firm's attorney.

He said the credit was terminated because of a "dispute" between the two companies. Carpet Fair will operate as usual, Mr. Nussbaum said, and will not lay off any employees.

Profits surge 54% at Chrysler

Chrysler Corp., powered by solid demand for its cars, trucks and minivans, yesterday reported a 54 percent surge in third-quarter profits to $651 million.

It said revenue rose 20 percent, to $11.7 billion, on a 15 percent gain in worldwide vehicle sales. Analysts said Chrysler's third-quarter profit puts the company on track to earn a record $3.5 billion this year, exceeding the $2.4 billion the company earned in 1984.

Airlines settle price-fixing case

Eight major airlines have agreed to give limited, 10 percent fare discounts to state and local government employees traveling on official business to settle price-fixing allegations leveled against them by 10 state attorneys general, the airlines said yesterday.

The deal calls for payment of up to $40 million in air fare discounts to state and local governments. Maryland's share of the discounts will amount to more than $600,000, state Attorney General J. Joseph Curran Jr. said.

Dart names consultant as CFO

Dart Group Corp. has named a Pennsylvania management consultant as its chief financial officer, the company announced yesterday, and its subsidiary Crown Books Corp. has appointed a new chief operating officer.

In addition to his position with Dart Group, Robert A. Marmon will serve as chief financial officer for Crown Books and principal financial officer for Trak Auto Corp. Steve Stevens, the new Crown chief operating officer and senior executive vice president, had been senior vice president and general merchandise manager of Crown.

Goldman Sachs names 58 partners

Goldman, Sachs & Co., facing the departure of some senior executives, yesterday named 58 partners, the most ever elected at one time to the 125-year-old securities firm.

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