Company’s 225 Stores Remain Open, Despite Chairman’s Disappearance
PHILADELPHIA (AP) _ Conston Corp. announced Monday that its 225 retail stores which feature clothes for large women are generating sufficient sales to carry on through Christmas, although the company continues to seek new financing.
President Ira Quint said the disappearance last month of chairman Victor Incendy, who also headed Cascade International, Inc., Conston’s majority shareholder and creditor, has not interrupted business.
″However, we will need a substitute source of financing to fund future operations,″ Quint said. ″To that end, management has been authorized to explore all strategic alternatives.″
Conston had expected to get the remainder of a $6 million line of credit from Cascade - it already had received $2.7 million - when Incendy disappeared, and Cascade advised Conston last Nov. 21 it couldn’t provide the additional financing.
″We are currently a streamlined company that is not highly leveraged,″ Quint said in a statement. ″Although the result cannot be assured, I remain highly optimistic that we can generate adequate financing to continue our business on a satisfactory basis.″
Incendy, from Boco Raton, Fla., was removed from his chairman positions at Conston and Cascade after disappearing. He had lost $75 million in paper profits.
The FBI and the Securities and Exchange Commission are looking into possibile securities violations.
Last month, after Cascade withdrew credit, Quaint said Conston would continue to operate while it sought to complete a reorganization plan.
At the present time, he said the company was ″unaware of any irregularities or other undisclosed matters relating to Cascade or Incendy that would have any material effect on Conston, its assets or liabilities.″
Quint’s secretary, Ann Deamer, said Conston operates stores across the United States including all of New England, Pennsylvania, New Jersey, New York, Delaware, Maryland, Virginia, North and South Carolina, Georgia, Tennessee, Ohio, Illinois, Indiana, Wisconsin and Iowa.