Casual Male Corp and certain of its subsidiaries have filed voluntary petitions to reorganise their businesses under Chapter 11 of the United States Bankruptcy Code.

The filings were made in the United States Bankruptcy Court for the Southern District of New York. In its filings, the company reported total assets of approximately $299 million and total liabilities of approximately $244 million as of February 3, 2001.

The Chapter 11 cases are designed to enable the company to restructure its debt and operations and help itemerge from Chapter 11 with renewed financial health.

Alan Weinstein, chairman and chief executive officer of Casual Male, said: "The voluntary filing, together with our plans to de-lever our balance sheet, will give us the opportunity to return Casual Male to financial health."

Mr Weinstein explained that the reason for the company's filing stems from a need to restructure its long-term indebtedness. He noted that it had pursued a number of potential capital market transactions to provide the necessary financing and avoid the bankruptcy filing. However, in the end, the company was unable to secure financing and ultimately concluded that the reorganisation process was the only viable alternative.

Mr Weinstein added that it was his expectation that during the Chapter 11 Case, and upon emergence, the company would remain the leading multi-channel specialty retailer of apparel for big and tall men.

Casual Male expects to have the necessary financing to continue operations while it restructures. It has signed a $135 million post-petition credit facility with a lending group, led by Fleet Retail Finance Inc and Back Bay Capital Funding LLC. The credit facility, upon court approval, will provide loans to fund the Company's ongoing operations. Employees will continue to be paid and vendors will be paid for post-petition purchases of goods and services in the ordinary course.

The Company has also filed a motion to enable it to take full advantage of the automatic injunction (that commences immediately upon the Chapter 11 filings) to protect its substantial net operating loss carryforward. This motion seeks to limit the buying and selling of equity and Convertible Subordinated Notes and the trading of claims that could effect an "ownership change" for tax purposes -thereby adversely affecting its valuable NOL tax asset.

Casual Male Corp and its subsidiaries sell apparel through the Casual Male Big & Tall, Repp Big & Tall and B&T Factory Store businesses, and through the Work n' Gear subsidiary which sells a wide selection of workwear, healthcare apparel and uniforms for industry and service businesses.