VENTURE STORES SEEK BANKRUPTCY PROTECTION

Venture Stores, a St. Louis-based chain with 93 department stores in nine states, has filed for bankruptcy protection.

Venture filed for reorganization under Chapter 11 in U.S. Bankruptcy Court in Delaware, where it is incorporated.

The company also announced that is has obtained from its current bank group, led by BT Commercial Corp., a new $190 million debtor-in-possession revolving credit facility that will provide the company with adequate capital to continue operations during its reorganization.

The company listed assets of $579 million and liabilities of $538 million in its Chapter 11 petition.

"We have fought for longer than anyone thought we could to complete Venture's repositioning, retain value for shareholders and give the company a chance for success," said chairman and chief executive Robert N. Wildrick.

Wildrick said Venture needs the time afforded by a Chapter 11 reorganization to cut expenses, rebuild sales and customer confidence, and get merchandise balanced to achieve profitability.

All Venture stores, including the store in Cape Girardeau, will remain open for now, said Venture spokesman Tom Goyda of St. Louis.

"The company will look at the profitability of all stores," said Goyda. "It is likely that some will eventually be closed."

No layoffs are planned immediately, but some jobs at Venture's corporate office in the St. Louis suburb of O'Fallon will eventually be eliminated.

In a message to employees, Wildrick said the past two years have been difficult. "I can't say that the road ahead will be any easier, but we are taking the only steps we can to give Venture a fighting chance," he said.

Since March 1996, Venture has been implementing a major program to reposition the company's stores from a general merchandise discount format to a new family value retail concept, said Wildrick. "The company sought to offer value-minded shoppers expanded assortments of home, family and leisure merchandise," he said.

In a prepared statement, Venture officials said customers liked the change, but the company has had problems receiving timely merchandise shipments from some vendors because of constant rumors and speculation about the company's future.

"As a result, stores have frequently been out of stock on advertised merchandise and other items," said Wildrick. "Now we'll be able to correct the in-stock problems we have faced, win back customer confidence and achieve a more profitable mix of goods."

Venture operates stores in Missouri, Kansas, Illinois, Iowa, Arkansas, Oklahoma, Texas, Kentucky and Indiana.

Venture Store at Cape Girardeau is one of three anchors at West Park Mall. JCPenney and Famous-Barr are the others.

Venture Stores adopted a new format in 1996. Along the way to the new design, 10 Venture stores have closed. One of the 10 closings was in Carbondale, Ill.