P. M. BRIEFING : Revco to Sell 700 Drugstores
TWINSBURG, Ohio — Revco D.S. Inc., the nation’s largest drugstore chain and the first big company to land in bankruptcy court from a debt-financed takeover, said today that it plans to sell more than 700 stores in 17 states to concentrate on the strongest markets.
To cover the cost of the restructuring, Revco said it will take a record $230-million charge in its third fiscal quarter, which will end Feb. 10.
The company intends to open discussions with potential buyers for 712 of its drugstores, mostly in the South and Midwest. Any sales are subject to bankruptcy court approval.
Revco filed for Chapter 11 protection from creditors in July, 1988, about a month after it failed to make an interest payment on about $700 million in outstanding high-risk junk bonds used to finance its $1.5-billion leveraged buyout in 1986.
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