The face value of Carter Hawley's debt is $550 million.

Both of Carter Hawley's high-yield bond issues rose 4 7/8 points, to 48.

Carter Hawley adopted a restructuring plan as the company was facing a hostile bid last year.

Carter Hawley will retain its Broadway chain and be based here.

Carter Hawley's shares lost almost two-thirds of their value in the last year.

Carter Hawley released a brief statement after declining earlier to comment on the rumors.

The economic picture in California, where Carter Hawley has 73 of its 87 stores, is not expected to improve before 1994.

Carter Hawley was once the store of choice for middle-class shoppers in California.

Carter Hawley was one of the retailers that found new interest.

His fans are betting he can pull off the same sort of miracle at Carter Hawley.