NASHVILLE, Tenn., Jan. 4 /PRNewswire/ -- Service Merchandise Company, Inc. (OTC Bulletin Board: SVCDQ - news) today announced that it will cease continuing business operations, beginning with the commencement of going-out-of-business sales at more than 200 stores in 32 states on January 19, 2002, subject to approval of the United States Bankruptcy Court for the Middle District of Tennessee. The Company said that its business plan performance exceeded expectations in the prior two years but disappointing 2001 financial results primarily attributable to the combined effects of the events of September 11, the resulting loss of consumer confidence and the soft economy generally weakened the Company's financial and liquidity position and precluded the Company from completing its planned business reorganization and emergence from Chapter 11.

USA TODAY 01/04/2002