P.M. BRIEFING : Hills Stores File for Protection
CANTON, Mass. — Hills Department Stores Inc., one of the nation’s largest discount store chains, filed for bankruptcy court protection today, saying it was unable to devise a plan to resolve its debt.
The announcement came a month after Hills said it would close 28 of its 214 stores as part of a restructuring that would cost the company $125 million.
In a statement, Hills said that the company’s operations continue to be profitable but that “the burden of its interest and debt repayment obligations requires the restructuring of its balance sheet.”
Hills also said it had obtained $250 million in financing from Chemical Bank, which should be “more than ample to provide for its ongoing liquidity needs.”
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