Eckerd Proposes New Offer to Acquire Revco Drug Stores

Article excerpt

CLEARWATER, Fla. (AP) _ Eckerd moved to become the nation's largest drug store chain Monday with new plans to take over Ohio-based Revco, which has been operating under federal bankruptcy protection for the past two years.

Full details of the new offer, made through federal bankruptcy court in Akron, Ohio, were not immediately revealed. But an Eckerd spokesman said it included plans for privately held Jack Eckerd Corp. to return to the public marketplace by offering stock in a company formed to hold both Eckerd and Revco.

Proceeds of the stock offering would be used to retire debt and assist in financing the Revco restructuring.

"Our plan offers a unique and equitable opportunity to bring Revco out of bankruptcy," said Stewart Turley, chairman of Jack Eckerd Corp., in a press release. "We believe this plan provides superior value for Revco's creditors."

A spokeswoman for the Twinsburg, Ohio-based Revco did not return phone calls seeking comment.

Eckerd, which has 1,676 stores mostly in the South, would pick up 1,150 Revco stores in 10 Eastern states. Together, they would eclipse the 2,378-store Rite Aid chain in terms of stores and challenge industry sales leader Walgreen's, which had total receipts of more than $6 billion in 1990.

Revco signs faded from Oklahoma in August 1990, as Eckerd purchased 18 of the 24 Sooner State stores. The others were taken over by other chains or closed.

Eckerd spokesman Gene Ormond said the company had made other offers to acquire the remaining Revco stores in the past year, but this is the first to include a stock offering and increased equity for creditors. …