Wickes Cos

Wickes Reaches Accord: Wickes Cos. said it has signed "a memorandum of understanding" that outlines a proposed settlement of several shareholder lawsuits. The suits allege, among other claims, violations of federal securities laws arising out of former management's tender offer for Wickes, based in Santa Monica. The offer was dropped in October, 1988. Subsequently, Wickes was acquired by WCI Holdings Corp. Under the proposed settlement, Wickes intends to set up a $4.5-million settlement fund for distribution to the shareholders who filed the lawsuits and their attorneys, and to pay settlement costs.

Corporate turnaround expert Sanford C. Sigoloff, credited with leading ailing companies such as Wickes Cos. out of bankruptcy but criticized by many as a tough-as-nails boss, has died. He was 80. Sigoloff died of complications from pneumonia Saturday with his family by his side at his Brentwood home. He also had Alzheimer's disease. Sigoloff, whose stern voice and lean figure were familiar to millions of Southern Californians from his "We got the message, Mr. Sigoloff" television commercials for Wickes' now-defunct Builders Emporium chain, was an ace at salvaging debt-laden companies.

While Wickes Cos. was dazzling the investment community last week with two rapid-fire, billion-dollar takeover deals, the company's head honcho was handling many of the last-minute details by phone--from Japan. Another executive might have felt out of touch so far from home at such a crucial time, but not the ever-confident Chairman Sanford C. Sigoloff.

Wickes Unit Buys Fabric Company: Wickes Companies Inc. announced that its subsidiary, Collins & Aikman Corp., has acquired the Doblin Fabrics Division of Springs Industries. Wickes said that Doblin, which has headquarters in Morganton, N.C., designs, manufactures and markets Jacquard upholstery fabrics.

Wickes Cos. of Santa Monica has filed notice with the Securities and Exchange Commission to sell at least $600 million in notes. Those funds, along with about $300 million from its planned divestitures, will be used to finance a major acquisition, the company said. No talks with takeover targets are under way, said Wickes spokeswoman Ann Julsen. She declined say in what areas Wickes is seeking an acquisition.

The Santa Monica-based manufacturing and retailing conglomerate sold its Eagle Signal Controls unit to Mark IV Industries of Amherst, N.Y. Eagle Signal is based in Austin, Tex., and has operations in Baraboo, Wis., and Davenport, Iowa. It makes several types of industrial controls, including electromagnetic and solid-state devices and microprocessor-based systems for industrial and traffic controls. Last year, it had sales of about $37 million.

Wickes PLC, a London-based division that sells timber, building materials and home improvement products in England, Holland and Belgium, plans to sell about 15% of the company on Britain's equivalent of the over-the-counter market early next year. Bill Mallory, executive vice president and chief financial officer of Santa Monica-based Wickes, the British company's parent, said the offering was considered to be "the most economical way to raise capital" in the local currency.

Wickes Cos. said Tuesday that it has agreed to sell two Midwestern retail chains and an insurance unit for about $100 million and also announced a reorganization of its consumer and industrial products group acquired last year from Gulf & Western Industries. The sale is not expected to have a material affect on the Santa Monica-based company's profitability, Wickes said.

After a four-month investigation, Wickes Cos. said Tuesday that it has set aside a $20-million pretax reserve--far less than analysts had anticipated--to cover costs arising from the sale of substandard carpeting by a Georgia subsidiary. The reserve, which totals $11.2 million after taxes, contributed to a sharp earnings decline for the diversified Santa Monica-based manufacturer and retailer. Net income for the quarter ended Aug. 1 was $18.9 million, down 30% from $26.

Drexel Burnham Lambert Inc.'s dealings in the stock of one of its big clients--Wickes Cos. of Santa Monica--figure prominently in the sweeping insider trading lawsuit filed Wednesday against Drexel by the Securities and Exchange Commission. The suit, the most massive securities fraud case ever brought by the SEC, involves many prominent Drexel clients.

Prosecutors' hopes to implicate Michael Milken in the illegal manipulation of Wickes Cos. stock seemed to go up in smoke Monday after none of the government's three witnesses directly linked him to a crucial purchase of 1.9 million Wickes shares on April 23, 1986. Prosecution witness Peter R. Gardiner, a former convertible securities trader at Drexel Burnham Lambert who admitted that he has frequently lied under oath, said Monday he believes that Milken was behind the manipulation.

Federal prosecutors got off to a shaky start Thursday in their attempt to pin additional crimes on Michael Milken beyond the six to which the former junk bond king has pleaded guilty. The government called two witnesses in the opening day of hearings to help U.S. District Judge Kimba M. Wood decide Milken's sentence. But as prosecutors focused on a manipulation of Wickes Cos.' stock in 1986, neither witness definitively implicated Milken in the illegal transaction. One of the witnesses, Cary J.

The wholly owned subsidiary of WCI Holdings Corp. reported net income of $161.1 million for the third quarter, contrasted with a net loss of $57.4 million a year ago. Revenue totaled $749.2 million, down about 7%. The profit results include income from discontinued operations and gains on retiring debt. Tables, D12

Kyocera International Inc. of San Diego said it has completed its $250-million cash acquisition of the Elco Group from Wickes Cos. Inc. Elco's administrative offices are in Laguna Hills, but the electronic connector manufacturer's main plant is in Huntingdon, Pa. The firm, with about 700 employees and $150 million in annual sales, also has facilities in Japan, West German, South Korea and England. Kyocera International is the North American arm of Kyocera Corp., a $2.

John Klein has been named president of Wickes Furniture, a unit of Santa Monica-based Wickes Cos.

Wickes Cos. of Santa Monica has sold its Yorktowne Inc. subsidiary to a group of institutional investors affiliated with Berkeley International Capital Corp. and members of Yorktowne's management.

Before Sanford C. Sigoloff took on a new turnaround assignment this week at L. J. Hooker Corp., he talked things over with the men he affectionately calls Zephyr, Earth Communicator, Abacus and Baud Man. They are four of the key associates who have stood by Sigoloff through thick and thin, nicknamed after the Flash Gordon comic book characters who loyally served their leader, Ming the Merciless (Sigoloff's nickname). Seven months since they were last together at Santa Monica-based Wickes Cos.

Sanford C. Sigoloff, the peripatetic turnaround artist who rescued Wickes Cos. only to surrender the company to new owners four years later, on Wednesday took over management of L. J. Hooker Corp.'s troubled U.S. retail chains. The announcement was made as the U.S. unit of Australia-based Hooker Corp. filed for protection from creditors under Chapter 11 of the U.S. Bankruptcy Code. L. J. Hooker operates about 100 specialty apparel and jewelry stores that last year had sales of $550 million.