ANN TAYLOR IN MEETINGS TO CALM FACTORS’ NERVES
Byline: Rich Wilner
NEW YORK — Ann Taylor is on the offensive. In a preemptive move to keep its credit lines and the flow of goods open, the specialty chain is holding one-on-one meetings this month with factors in an attempt to counter mounting speculation on the retailer’s precarious business.
The chain’s stock hit a 52-week low last week, following several months of double-digit same-store sales declines and industry speculation about an uncertain future. Ann Taylor officials could not be reached for comment Friday.
Last year, factors were blamed by some retail executives for getting spooked by the tough retail climate and prematurely cutting credit. Reportedly, factors have generally stuck with Ann Taylor and continued to check orders. Only one or two factors are believed to have tightened the retailer’s credit.
Ann Taylor is telling factors that inventory is 25 percent below last year’s levels and is right on plan as the chain heads into the spring selling season, according to sources knowledgeable about meetings held between the retailer and factors.
Last Friday, Ann Taylor stock closed up 1/4 to 11 3/8, after taking a 7/8 hit on Tuesday. The shares jumped 1 1/2 Wednesday, possibly due to Ann Taylor’s new candidness. In addition, one Wall Street analyst, Black & Co. of Portland, Ore., gave the chain a rosy review and dismissed the rumors of a possible Chapter 11 filing as false.
On Jan. 4, the specialty chain reported December same-store sales declined 13.8 percent. — Fairchild News Service