TSC Buys-Quality Farm/Central Tractor Bankruptcy
Tractor Supply Company (ticker: TSCO, exchange: NASDAQ) News Release - 31-Dec-2001
Tractor Supply Company Agrees to Acquire Certain Quality Stores, Inc. Assets; Adds 85 Locations to 2002 Store Expansion Plan
NASHVILLE, Tenn., Dec 31, 2001 (BUSINESS WIRE) -- Tractor Supply Company (NASDAQ: TSCO), the nation's largest retail farm and ranch store chain, today announced that its recently formed Joint Venture with Great American Group, Gordon Brothers Retail Partners, LLC and DJM Asset Management LLC was the successful bidder at auction for the assets of Quality Stores, Inc., a debtor and debtor in possession under Chapter 11 of the United States Bankruptcy Code. The bid, which has been approved by the United States Bankruptcy Court for the Western District of Michigan, provides for the Joint Venture to act as exclusive agent for the disposition of substantially all of the Quality Stores, Inc. assets located in New York, Pennsylvania, Virginia, Maryland, West Virginia, Delaware, Kentucky, Ohio, Indiana and Michigan. Financial terms of this agreement were not disclosed. Under its agreement with the other Joint Venture partners, Tractor Supply Company has agreed to purchase the real estate assets for approximately 25 stores, to assume the lease rights for approximately 60 additional stores and to purchase the related equipment, furniture and fixtures. After a complete liquidation of the existing inventory by other members of the joint venture, Tractor Supply expects to reopen approximately 85 stores in the Tractor Supply format by the middle of 2002. Joe Scarlett, Tractor Supply Company Chief Executive Officer, commented, "The addition of approximately 85 stores to our 2002 new store plan represents a significant store expansion for Tractor Supply Company. Specifically, we expect to open a total of over 100 stores next year, further building on our proven business strategy. This asset purchase will expand our geographic coverage, increase our market share, leverage our general and administrative expenses and improve overall efficiency while delivering a differentiated merchandise assortment to our new customers." Mr. Scarlett concluded, "We have been impressed with the commitment of Quality's knowledgeable store managers and sales associates and the historically strong support from their customers who embrace the rural lifestyle. We're looking forward to building a strong partnership with a significant number of Quality employees to help us deliver the finest possible shopping experience for our customers." At December 31, 2001, Tractor Supply Company operated 323 stores in 28 states, supplying the daily farm and ranch maintenance needs of its target customers: hobby, part-time and full-time farmers and ranchers, as well as suburban customers, contractors and tradesmen. The Company's stores are located in rural communities and in the outlying areas of large cities where the rural lifestyle is a significant factor in the local economy. The Company offers a comprehensive selection of merchandise including farm maintenance products, animal and pet products, general maintenance products, lawn and garden products, light truck equipment, and work clothing. Footnotes:- As with any business, all phases of the Company's operations are subject to influences outside its control. This information contains certain forward-looking statements. These statements include reference to certain factors, any one, or a combination, of which could materially affect the results of the Company's operations. These factors include general economic cycles affecting consumer spending, weather factors, operating factors affecting customer satisfaction, consumer debt levels, pricing and other competitive factors, the ability to attract, train and retain qualified associates, the ability to identify suitable locations and negotiate favorable lease agreements on new and relocated stores, the timing and acceptance of new products in the stores, the mix of goods sold, the continued availability of favorable credit sources, capital market conditions in general and the seasonality of the Company's business. Forward-looking statements made by or on behalf of the Company are based on knowledge of its business and the environment in which it operates, but because of the factors listed above, actual results could differ materially from those reflected by any forward-looking statements. Consequently, all of the forward-looking statements made are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by the Company will be realized or, even if substantially realized, that they will have the expected consequences to or effects on the Company or its business and operations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company does not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.CONTACT: Tractor Supply Company Calvin B. Massmann, 615/366-4600 or Morgen-Walke Associates Investor Relations: Shannon Froehlich / Priya Akhoury Press: Stephanie Sampiere 212/850-5600
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