LEVITZ OFFERING OFF FOR PRESENT

The Levitz Furniture Corporation—which has been a highflying stock on the New York Stock Exchange—disclosed yesterday that it would not proceed with its proposed public offering of 600,000 shares.

The announcement, made from company headquarters in Pottstown, Pa., by Henry J. Morgan, vice president and general counsel, said the company had advised Bache & Co., its managing underwriter, that the company “does not intend to proceed” with the offering.

But in Chicago, where the company's chairman and chief executive, Ralph Levitz, was addressing a luncheon group of furniture executives, somewhat more of the Levitz story appeared to emerge.

Mr. Levitz, asked to comment on the public offering, said: “The present stock will not come out now, brit it will come out. We are a sound company and will continue to expand.”

He declined to say when the issue would come out but indicated that it would be “before long.”

Mr. Levitz, the keynote speaker before the annual luncheon meeting of the American Furniture Mart, told businessmen that the company goal “is the same as it has always been—at least one outlet in every one of the 55 major markets and in every one of the 50 secondary markets.” The company now operates 38 warehouse‐furniture showrooms.

On the Big Board, meanwhile, Levitz shares stood at 43%8, up 2 points as the fifth most active issue, trading 136,400 shares. Mr. Levitz said that an analysts’ forecast of about 90 cents a share in earnings for the year ending Jan. 31, 1973, was “in the ballpark.”

In Pottstown, Mr. Morgan said that discussions had been held with the S.E.C. on a settlement order and that Levitz had sdbmitted an offer to the agency to settle pending stoporder proceedings.

Mr. Morgan said that at the conclusion of these negotiations Levitz would “consider the nature and timing of future financing.” He said the company had adequate alternate sources but declined to name them.

Other sources, however, questioned whether such alternate sources would continue to show interest.

The concern had indicated in its recent prospectus that the issue would be used to help finance 20 new stores during the current fiscal year. Each store needs about $4.25‐million to get functioning, the prospectus said—or a total of $85million for the 20—and the issues would have provided approximately $35‐million. The rest needed would have come from operations and other sources.

Last month Levitz postponed its offering as a result of an S.E.C. investigation into aspects of Levitz's labor relations and trading activity. The Federal agency, in an administrative proceeding, issued stop‐order on the stock issue.

Short‐Selling Cited

In Chicago, Mr. Levitz said that a company that “rises head and shoulders above the rest is going to be a target, but we are beginning to believe it is not just a coincidence.”

He suggested that short‐sellers had been “hurt badly” on Levitz stock, adding: “We believe that the possibility of localized effort to gain unfavorable publicity against Levitz exists.”

Mr. Morgan said that rumors of short‐selling had been circulating for “some time” but that he was unable to find any proof of it.

Discussing the Levitz difficulties with the S.E.C., Mr. Levitz said that the company had told the S.E.C. that the company expected “union pressure,” but that the Federal agency said, “That wasn't enough.”

“So,” Mr. Levitz said, “the present stock will not come out now, but it will come out.”

The chief executive accused the S.E.C. of “trying to slap us with a murder rap on traffic violation.”