Sale of Strouds, Inc. to Strouds Acquisition Corporation Approved by Bankruptcy Court

Apr 16, 2001, 01:00 ET from Strouds, Inc.

    CITY OF INDUSTRY, Calif., April 16 /PRNewswire/ -- Strouds, Inc., a
 specialty retailer of bed, bath, tabletop and other home textile products,
 announced today that the Bankruptcy Court overseeing its reorganization has
 approved the sale of substantially all of the assets of its business to
 Strouds Acquisition Corporation, comprised of senior management and Cruttenden
 Partners, LLC, for approximately $39.5 million.  The purchase includes
 50 stores, two distribution centers, corporate headquarters and additional
 assets, including all trade names, trademarks, copyrights and the Company's
 website.
     Strouds Acquisition Corporation's ownership consists of Cruttenden
 Partners, LLC, a Newport Beach, California-based private investment firm, and
 current senior officers of Strouds, Inc. including Gary A. Van Wagner, Chief
 Financial Officer and Robert F. Valone, General Merchandise Manager.
     "The Company is especially pleased with the Court's approval of the sale,
 and the future opportunities new ownership affords Strouds.  Gary's and Rob's
 continuing participation will provide continuity for the new organization and
 their leadership will help strengthen the Strouds brand name in the
 marketplace," said President and Chief Executive Officer Thomas S.
 Paccioretti.  "Management believes that with greater financial and strategic
 resources provided by the new company, Strouds will be reestablished as a
 leader in the industry."
     Strouds Acquisition Corporation is led by Robert F. Valone as President
 and Gary A. Van Wagner as Chief Operating Officer and CFO.  Substantially all
 of existing management will transition to the new company.  The existing
 corporate headquarters and distribution facilities in the City of Industry
 will remain operational.  The sale is scheduled to close in late April.
     Strouds filed its voluntary Chapter 11 petition in the U.S. Bankruptcy
 Court for the District of Delaware in Wilmington on September 7, 2000.
     Strouds, Inc., the Linen Experts(R), is a specialty retailer of bed, bath,
 tabletop and other home textiles.  Founded in 1979 by Wilfred "Bill" Stroud,
 the Company currently operates 50 stores in four states and also markets its
 home products through its web sites, www.strouds.com and www.linenexperts.com.
 Management intends to restore Bill Stroud's original vision of providing its
 customers with reasonably priced, high quality linen and related goods.
 
     Except for the historical information contained herein, the matters
 discussed in the news release are forward-looking statements that involve risk
 and uncertainties, and actual results could differ materially from the
 Company's present expectations.  Among the important factors that could cause
 actual results to differ materially from those indicated in the forward-
 looking statements are:  customer demand and trends in the home textiles
 industry, the performance of stores in the new markets, the effect of economic
 conditions, the impact of the competitive openings and pricing, supply
 constraints or difficulties, and other risks detailed in the Company's
 Securities and Exchange Commission filings.
 
 

SOURCE Strouds, Inc.
    CITY OF INDUSTRY, Calif., April 16 /PRNewswire/ -- Strouds, Inc., a
 specialty retailer of bed, bath, tabletop and other home textile products,
 announced today that the Bankruptcy Court overseeing its reorganization has
 approved the sale of substantially all of the assets of its business to
 Strouds Acquisition Corporation, comprised of senior management and Cruttenden
 Partners, LLC, for approximately $39.5 million.  The purchase includes
 50 stores, two distribution centers, corporate headquarters and additional
 assets, including all trade names, trademarks, copyrights and the Company's
 website.
     Strouds Acquisition Corporation's ownership consists of Cruttenden
 Partners, LLC, a Newport Beach, California-based private investment firm, and
 current senior officers of Strouds, Inc. including Gary A. Van Wagner, Chief
 Financial Officer and Robert F. Valone, General Merchandise Manager.
     "The Company is especially pleased with the Court's approval of the sale,
 and the future opportunities new ownership affords Strouds.  Gary's and Rob's
 continuing participation will provide continuity for the new organization and
 their leadership will help strengthen the Strouds brand name in the
 marketplace," said President and Chief Executive Officer Thomas S.
 Paccioretti.  "Management believes that with greater financial and strategic
 resources provided by the new company, Strouds will be reestablished as a
 leader in the industry."
     Strouds Acquisition Corporation is led by Robert F. Valone as President
 and Gary A. Van Wagner as Chief Operating Officer and CFO.  Substantially all
 of existing management will transition to the new company.  The existing
 corporate headquarters and distribution facilities in the City of Industry
 will remain operational.  The sale is scheduled to close in late April.
     Strouds filed its voluntary Chapter 11 petition in the U.S. Bankruptcy
 Court for the District of Delaware in Wilmington on September 7, 2000.
     Strouds, Inc., the Linen Experts(R), is a specialty retailer of bed, bath,
 tabletop and other home textiles.  Founded in 1979 by Wilfred "Bill" Stroud,
 the Company currently operates 50 stores in four states and also markets its
 home products through its web sites, www.strouds.com and www.linenexperts.com.
 Management intends to restore Bill Stroud's original vision of providing its
 customers with reasonably priced, high quality linen and related goods.
 
     Except for the historical information contained herein, the matters
 discussed in the news release are forward-looking statements that involve risk
 and uncertainties, and actual results could differ materially from the
 Company's present expectations.  Among the important factors that could cause
 actual results to differ materially from those indicated in the forward-
 looking statements are:  customer demand and trends in the home textiles
 industry, the performance of stores in the new markets, the effect of economic
 conditions, the impact of the competitive openings and pricing, supply
 constraints or difficulties, and other risks detailed in the Company's
 Securities and Exchange Commission filings.
 
 SOURCE  Strouds, Inc.