Jacobson's Gets Operating Funds

Jacobson Stores Inc. (Jackson, Mich.), which filed for Chapter 11 bankruptcy protection earlier this week, announced that it has obtained authorization from the U.S. Bankruptcy Court to use cash collateral through Jan. 26, 2002. This means it will be able to use cash from operations to purchase merchandise and maintain business operations in its 23 stores while it continues negotiations with its bank group to develop a longer-term financing arrangement.

In its petition with the United States Bankruptcy Court for the Eastern District of Michigan, Southern Division (Detroit) the company indicated plans to close five under-performing stores and eliminate 520 associate positions in them, subject to court approval. The five facilities are in Columbus and Toledo, Ohio, and in Clearwater, Osprey and Tampa, Fla.