PETRIE POSTS FEBRUARY LOSS OF $4M ON SALES OF $44M
Byline: Thomas J. Ryan
NEW YORK — Petrie Retail Inc., in bankruptcy proceedings since October 1995, reported an operating loss of $4 million in the four weeks ended March 1 on sales of $44 million.
The net loss came to $6.7 million after $80,000 in store closing costs, $1.2 million for depreciation, $750,000 for its bankruptcy reorganization and $690,000 in interest and taxes.
In January, the women’s apparel chain, based in Secaucus, N.J., showed an operating loss of $33.3 million, hit by a $23.6 million charge to close 116 of its 994 stores. Petrie had 1,623 stores when it filed for bankruptcy.
Sales in January totaled $37.1 million.
The court recently approved pay packages for two Petrie officers.
Edwin J. Holman, chairman and chief executive officer, entered a contract to receive $650,000 in annual salary plus an award of 6 percent of the equity immediately following the confirmation of a plan of reorganization. Holman’s pay package is secured by a letter of credit from Chase Manhattan.
Jay Galin, president of the G&G junior chain, Petrie’s most profitable business, will earn an annual base salary of $625,000, plus additional compensation of $400,000.
G&G’s operating earnings surged 130 percent last year and represented 35 percent of Petrie’s overall sales, or about $260 million, according to court papers.
As of March 1, Petrie had $36 million in borrowings outstanding under its $85 million debtor-in-possession facility.
Petrie’s also operates the Petrie, Marianne, Stuarts, Jean Nicole and Winkelman’s/M.J. Carrol chains.