Montgomery Ward & Co., the Chicago retailer and direct mailer that filed for Chapter 11 bankruptcy protection in mid-1997, has taken the first steps to emerge from the protection. The company expects to emerge from the protection in mid-1999.
Ward’s direct marketing operations, The Signature Group, would be turned over to GE Capital, a major creditor. Ward will also set up an account to pay court costs in managing claims from other creditors, who will receive equity in Ward as a settlement of their claims.
Under the proposed plan, the Signature Group “will accelerate its growth outside of the Wards customer base,” said GE Capital executive vice president Edward Steward.
As part of its reorganization, Wards has closed more than 100 stored, reduced staff, and is planning to remodel half of its stores by 2001.
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