NEW YORK — Bankrupt Spiegel Inc. on Monday filed its August operating report with the Securities and Exchange Commission reflecting a loss for the month, and acknowledged that certain matters raise substantial doubt about the company’s future.
The net loss for the four weeks ended Aug. 23 was $38.7 million and the operating loss, not including reorganization items and interest expense, was $17.6 million. Total revenues, including sales and $9.9 million in other revenues, were $114.3 million.
Reorganization costs for the month totaled $20.7 million, which included professional fees of $1.6 million and payments of $9.6 million to landlords for lease rejections.
Spiegel filed for Chapter 11 bankruptcy court protection in Manhattan on March 17. It said in the regulatory filing that funds available under its debtor-in-possession financing facility as of Aug. 23 were $192.4 million, with nothing outstanding in cash borrowings. The company did have $500,000 in letters of credit outstanding as of the August date.
As reported, the firm said recently it was looking for a buyer for its Newport News catalog business, and earlier this year was exploring the possibility of selling its Eddie Bauer catalog and retail store operation. L.L. Bean has been conducting some investigative due diligence over Bauer.
In the SEC report, Spiegel said while operating under Chapter 11, it or one of its co-debtors “may sell or otherwise dispose of assets and liquidate or settle liabilities.” Such matters, Spiegel said in the filing, “raise substantial doubt about the company’s ability to continue as a going concern for a reasonable period of time.”
While such statements are frequently found in the regulatory filings and operating statements of bankrupt firms, the sentiment echoes what many credit analysts have been saying about Spiegel for months. Most don’t see how Spiegel can survive in its present incarnation. Its future, they’ve noted, may depend on how much they can get for their assets and how soon those assets can be sold to help stop the flow of red ink from continuing operations.