CATHERINES STORES EXPECTS PRETAX ASSET WRITEDOWN
NEW YORK — Catherines Stores Corp. expects to report a fourth-quarter pretax writedown of assets of about $1 million.
In addition, the company said January same-store sales were unchanged from year-ago figures.
Total sales for the four weeks were $16.3 million compared to $18.6 in the five weeks last year.
For the year ended Feb. 1, same-store sales fell 5.3 percent.
Total sales eased 2.2 percent to $268 million from $274.1 million.
The $1 million writedown is related to stores opened in the past two years whose future projected cash flows are anticipated to be less than the company’s investment.
The company said the writedown will not reduce its cash flow, but it will reduce depreciation expense as it goes forward.
During January, Catherines closed three stores it found to be marginal.
The company is planning to open six stores in the first quarter.
Catherines will also realign its merchandising organization.
“Under our new alignment our top merchandising executives are focused on product rather than specific operating divisions,” Bernard J. Wein, chief executive officer said in a statement.
“This should enable them to better identify opportunities available in the marketplace,” Wein continued, “and maintain the distinctive characteristics of each of our formats.”
Stanley Grossman, executive vice president of merchandising, will be responsible for dresses, coats, accessories and intimate apparel for all divisions.
Allen Weinstein, senior vice president of merchandising, will be responsible for sportswear for all of its operating divisions.
Catherines, which has its headquarters in Memphis, Tenn., operates some 457 stores selling apparel for large-size women’s in 40 states under the banners of Catherine’s, PS…Plus Sizes, Plus Savings, Added Dimensions and The Answer.