SOLO SERVE CHOPS LOSSES
NEW YORK — Solo Serve Corp. shaved its second-quarter loss to $473,000 from a year-ago loss of $1.2 million. Sales at the 27-unit off-price chain plunged 18.4 percent to $21.3 million from $26.1 million. Comparable-store sales fell 19.2 percent.
For the six months ended Aug. 2, Solo Serve’s loss grew to $3.1 million from $2.2 million. Sales slid 15.1 percent, totaling $41 million versus $48.3 million. Comps dropped 14.7 percent.
Separately, the retailer said it has a commitment from Sanwa Business Credit Corp. for a three-year, $12 million revolving credit facility to replace its current instrument.
The company will receive another $750,000 from Sanwa, collateralized by a $750,000 letter of credit from Solo Serve’s principal shareholder, General Atlantic Corp. In addition, Chuck Siegel, president and chief executive officer of Solo Serve, will make a $500,000 subordinated loan to the company.
Further, Siegel will enter into a new five-year employment agreement and has agreed to acquire the 1.3 million shares of Solo Serve held by General Atlantic, which is based in Greenwich, Conn. After purchasing those shares, Siegel will own about 30 percent of the retailer’s voting stock.