HECK'S <HEX> FILES FOR CHAPTER 11 BANKRUPTCY
Heck's Inc said it has filed for
protection from creditors under Chapter 11 of the federal
bankruptcy act.
    The company said its wholly owned wholesale subsidiaries,
its Maloney's subsidiary and its discount drug store operation
are not included in the filing.
    Heck's said it made the filing because its bank lending
group failed to renew on acceptable terms a credit agreement
that expired February 28.
    It said the 12 banks provided about 50 mln dlrs in credit
lines to Heck's, representing all its short-term borrowings.
    Heck's said some of the banks have demanded repayment.
    The company said another reason for the filing was a
developing shortage in merchandise as suppliers reacted to the
breakdown in bank support.
    Heck's said two representatives of the bank group, Charles
B. Gates Jr. and Walter B. Dial Jr., have left its board.
    Heck's said it is exploring, with its investment banker,
the possibility of selling all or parts of the company.
    It said the filing will allow it to work out arrangements
with suppliers for the delivery of merchandise while permitting
it to continue its previously-announced programs of
cost-cutting and the paring of operations.
 Reuter
