CENTRAL HARDWARE SAYS BANKRUPTCY WON'T AFFECT JOBS

Although Central Hardware Co. has filed for bankruptcy, officials say it will not affect customers or jobs.

"The Cape Girardeau operation will remain open," said Ross Palmer, a spokesman for Spirit Holding Co., parent company of Central Hardware. "Neither our employees or our customers should notice any difference in the way we do business."

The local operation employs 59 people.

Central Hardware Co. and Witte Hardware Co. filed bankruptcy petitions Monday in Wilmington, Del. Last week, the parent company, Spirit Holding Co., filed for Chapter 11 protection in Wilmington, Del.

Central and Witte, both based in St. Louis, were forced into bankruptcy after lenders began to ask suppliers and credit card companies to pay them rather than Central and Witte, Palmer told t he Missourian Tuesday.

In a prepared statement, Neil Marglous, president of Spirit, said:

"The banks took drastic actions after the parent's filing, leaving us with no choice but to seek legal protection for Central and Witte."

Spirit bought Central and Witte from Interco Inc. in 1989 and is still suffering from the crushing pressure of $180 million in bank loans that financed the buyout.

Central Hardware and Witte will continue to operate as they and their parent company seek to reorganize and restructure their debt load, executives said.

Central Hardware, based in Bridgeton, has 39 stores in Missouri, Illinois, Ohio, Tennessee and Indiana - including 14 in the St. Louis area. About 1,400 of its 3,500 employees are in the St. Louis area.

Witte is a wholesale distributor of hardware products. It employs about 400 people at its headquarters in St. Louis and warehouse in Vandalia, Ill.

Spirit Holdings is owned by GIB group, the largest retailer in Belgium; Ron Rashkow, chairman of the Handy Andy hardware chain in Chicago; JMB Realty, a large real estate company based in Chicago; and Salomon Bros., an investment banking firm based in New York.

Total liabilities for the three companies are $249.2 million, according to Sandra Sternberg, a Spirit spokeswoman. Assets total $260 million, which includes goodwill and other intangible assets.