LOEHMANN’S QUARTER LOSS HITS $31.9M
NEW YORK — Loehmann’s Inc. reported huge second-quarter losses in a filing with the Securities and Exchange Commission and said there is “substantial doubt” about continuing as an ongoing concern.
The retailer, which filed for Chapter 11 bankruptcy court protection on May 17, cited recurring operating losses and negative operating cash flow.
Confirmation of a reorganization plan depends on getting exit financing and generating sufficient cash to meet operational and financing requirements, the company said.
The net loss was $31.9 million, which included reorganization costs of $21.1 million and taxes of $28,000 for the second quarter ended July 31, compared to last year’s $2.2 million loss, which included a $560,000 extraordinary loss on the extinguishment of debt. Excluding reorganization costs and taxes, the loss would have been $10.8 million compared to last year’s $1.5 million.
Sales fell 7.3 percent to $90 million from $97.1 million. Comp-store sales dropped 7.7 percent. Gross profit fell to 25.8 percent, or $23.2 million, from last year’s 32.3 percent, or $31.3 million. Loehmann’s attributed part of the drop to a $6.1 million charge for liquidating inventory.
Loehmann’s had a $35.7 million net loss for the six months ended July 31, including $21.1 million in reorganization costs and $66,000 in taxes. Sales dropped 4.4 percent to $198.2 million; comps decreased by 4.5 percent.