Carter Hawley Hale’s Shares Plunge 25% as Its Bonds Rise

Carter Hawley Hale Stores’ stock headed back down Friday amid continuing concerns that the company might be forced to seek court protection from its creditors.

The Los Angeles-based retailer’s stock was the second-biggest percentage loser on the New York Stock Exchange, posting a 25% drop. The shares were off 62.5 cents, closing at $1.875, near their all-time low.

Carter Hawley’s $350 million in junk bonds, which plunged early in the week, rose slightly on the exchange Friday. Its bonds maturing in 1996, which until this week paid 12.25% interest, rose $8.75 to close at $203.75 per $1,000 of face value.

The company’s bonds due in 2002, which had paid 12.5% interest, were up $3.75 to $173.75.

The Times reported Friday that Carter Hawley, parent of Broadway-Southern California and three other department store chains, was making final preparations to file for Chapter 11 bankruptcy court protection.

Carter Hawley declined to comment.