PW: Future of Crown Remains Uncertain

Jul 13, 1998

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Future of Crown Remains Uncertain
-- 7/13/98
Speculation about Crown Books' future continued to swirl late last week as the company announced that although it continues to examine a number of options, it will probably file for bankruptcy protection shortly. The announcement came after NASDAQ put a stop on the trading of Crown's stock following a round of heavy trading on Tuesday that saw more than two million shaes traded, compared to a usual daily volume of approximately 87,000. Crown's shares, which at one point stood at 50 cents per share, were selling for $4.81 on July 7, the day trading was halted. Trading had not resumed by presstime last week.
The heavy trading in Crown's stock was spurred by reports that the company was close to working out an agreement to sell the bookstore chain to First Lincoln Holdings. It is not clear what First Lincolns plans would be for Crown if it were to acquire the chain. In addition to First Lincoln, Larry Schafran, a former Dart director, said he was interested in acquiring a portion of the company's stores.

As negotiations drag on, Crown's outlets are operating with inventory well below normal levels as Ingram continues to supply the company on a cash-only basis. Crown's outstanding debt to Ingram, which is at least $10 million, is said to be one of the major points delaying a deal.
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A version of this article appeared in the 07/13/1998 issue of Publishers Weekly under the headline: