CHICO’S PLANS TO REALIGN DEBT, TAKE A CHARGE
NEW YORK — Chico’s Fas Inc. said Friday it will take a charge of $135,000, or 2 cents a share, in the fourth quarter to refinance and restructure its outstanding debt.
In the fourth quarter ended Jan. 1, 1995, Chico’s lost $873,000 after a $575,000 charge for management changes and lease write-offs. Sales were $14.1 million.
Chico’s said it secured a seven-year, $5.6 million mortgage on its headquarters with Founders National Trust Bank to replace $2.4 million of installment debt payable through June 1997 and a $1.5 million term loan that matures in May 1996.
The company also extended its existing $3 million working capital credit line and a $3 million letter of credit facility with NationsBank until May 1997. The additional mortgage funding of $1.6 million will be used as collateral for the extended credit facility.
“This restructuring of the company’s indebtedness provides Chico’s with a much-improved working capital and liquidity position,” said Charles Kleman, chief financial officer.
The Fort Myers, Fla.-based firm sells private label women’s apparel through 123 stores in 32 states. — Fairchild News Service