T R O U B L E D C O M P A N Y R E P O R T E R

Monday, August 17, 1998, Vol. 2, No. 160


LEVITZ FURNITURE: Seeks Agreement With Household Bank
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The debtors, Levitz Furniture Incorporated, et al., is
seeking court authorization to enter into a merchant
agreement with Household Bank (SB), N.A.

The debtors currently run their credit sales through a
private customer credit program with General Electric
Capital Corporation. Since the petition date, the debtors'
earnings under the GECC Agreement have decreased as a
result of an increase in servicing fees and a decrease in
approval rates for credit applications submitted to GE
Capital for approval.

The debtors expect that the agreement with Household Bank
will generate increased revenues over the term of the
agreement as well as providing a long-term reduction of net
expenses.