Crown Books Corporation Likely to Commence Bankruptcy Proceedings

Posted on July 9, 1998

Crown Books Corporation announced that it is likely that the company will commence a voluntary reorganization proceeding under Chapter 11 of the United States Bankruptcy Code. The Company anticipates that the bankruptcy filing will occur within the next several days.

The company has previously disclosed that it is exploring alternatives for maintaining adequate liquidity as a result of substantial declines in the Company's financial performance and deterioration of its business in recent years. While the company continues to explore such alternatives, it has determined that any alternative that it pursues is likely to include the reorganization of the Company through a bankruptcy filing.