SOURCE: Patrick Hackett Hardware Company


November 17, 2009 05:30 ET

Hackett's Stores, Inc. Releases Update

OGDENSBURG, NY--(Marketwire - November 17, 2009) - Hackett's Stores, Inc. and subsidiary, Patrick Hackett Hardware Company (PINKSHEETS: HCKI) ("Hackett's"), and chief executive officer Herbert Becker issued the following update to its shareholders today:

Dear Shareholders:

While Hackett's management wrestled with the decision of whether or not to seek the protections afforded to it by our bankruptcy laws, it became clearer over the past several weeks that Chapter 11 would be the cleanest and quickest path to repositioning Patrick Hackett Hardware Company in the marketplace and distancing itself from the devastating blow that Wells Fargo dealt it by forcing the repayment of $5.5 million over a six month period. And while most of Hackett's vendors and creditors realized and appreciated the difficulty these actions placed upon Hackett's, certain others had unrealistic expectations on the timing of the repayment debts owed. While Hackett's and its parent company, Seaway Valley Capital Corporation (PINKSHEETS: SEVA), had already successfully negotiated settlement agreements with numerous vendors, negotiations with each and every vendor and creditor, which number in the hundreds, was simply unrealistic.

Management feels that this period will provide our subsidiary, Patrick Hackett Hardware Company, with a window to restructure its debts, streamline its costs, and position itself for eventual emergence from Chapter 11 while spending the majority of its time and efforts focused on operations and rebuilding the company.

While management works towards emergence, the company will continue to look towards the future. Management has already begun:

--  The reopening of the original Canton store;
--  New merchandise for the Christmas season throughout the chain;
--  The continued development of the website;
--  Increased focus on customer service.

I look upon this not as a crisis, but as an opportunity to "begin again now." I look forward to bringing our company into the next generation, and I invite all our neighbors to stop by one or more of our stores. I am certain you will be delighted.

Safe Harbor Statement

Certain statements in this release constitute forward-looking statements or statements which may be deemed or construed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words "forecast," "project," "intend," "expect" "should," "would," and similar expressions and all statements, which are not historical facts, are intended to identify forward-looking statements. These forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors which could cause the Company's actual results, performance (finance or operating) or achievements to differ from future results, performance (financing and operating) or achievements expressed or implied by such forward-looking statements.