Best Files for Chapter 11; 350 Jobs to Be Cut

Best Products Inc., one of the nation’s largest catalogue showroom retailers, said today that the economic slowdown has forced it to seek protection from its creditors under Chapter 11 of the federal Bankruptcy Code.

The privately held company also said it plans to reduce expenses by $30 million by laying off 350 workers and freezing salaries.

“We were forced to take this action as a result of the general economy decline, the tightening of both trade and bank credit, and the substantial slowdown in consumer spending,” said Best President Stewart M. Kasen.

Kasen said the company will continue operating.

Best, which employs 17,000 people nationwide, laid off 120 members of its corporate staff a year ago and laid off another 120 corporate workers in January, 1989.

Best’s problems are rooted in a $1.1-billion leveraged buyout by the New York investment firm of Adler & Shaykin. The 1988 buyout saddled Best with huge debt payments at a time when industry sales were lackluster.