China has outdone the Fed. Now accepting sofa beds as collateral for zero interest loans.
CIT is soooooo yesterday
"Optimistic"... but preparing to liquidate just in case
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Jennifer Convertibles posts $1.5 million loss
But cost cuts began to take effect, says CEO
Larry Thomas -- Furniture Today, July 15, 2009
WOODBURY, N.Y. — Retailer Jennifer Convertibles reported a net loss of $1.5 million for the quarter ended May 30 as sales tumbled 21.8%.
The sofa-sleeper specialist said the loss, which equals 22 cents per share, was more than double its loss in the same quarter in 2008.
Same-store sales were off 26.5% for the period, the third quarter of Jennifer's fiscal year.
"While our results for the quarter continue to be disappointing, we began to see some impact of the cost reduction measures we have made," said Harley Greenfield, CEO.
The company, which has 149 Jennifer Convertibles locations, 14 Jennifer Leather stores and two licensed Ashley Furniture HomeStores, also said it had hired the investment banking firm of TM Capital Corp. "to assist us in the evaluation of our strategic alternatives."
Sales for the most recent quarter totaled $22.1 million, down from $28.3 million in the same quarter last year.
The net loss of $1.5 million compared with a loss of $711,000 or 10 cents per share in the same period last year.
For the nine months ended May 30, sales fell 20.2% to $71.4 million.
The nine-month loss totaled $5.75 million or 81 cents per share. That compares with a loss of $2.5 million or 35 cents per share in the nine months ended May 24, 2008.
"We are still very optimistic about the future," Greenfield said. "When either the economy begins to strengthen or our new marketing initiatives take hold, we have positioned ourselves to quickly resume sales momentum with a highly efficient infrastructure and a very competitive product mix."
The retailer also said it had reached agreement with Caye Home Furnishings, which formerly was its principal supplier, to pay back $400,000 of debt owed to Caye. In return, Caye agreed to release its security interest in the company's assets and terminate all other obligations under the credit agreement.
The retailer's new supplier, a Chinese company that had been producing nearly all the merchandise ordered through Caye, has agreed to vendor terms of 150 days without interest for balances up to $10 million through September 2010, the retailer said. |
