BRADLEES LOSES $35.1M IN QUARTER
NEW YORK — Bradlees Inc., reorganizing in Chapter 11 since June 23, reported a third-quarter loss of $35.3 million before interest, reorganization items and an income-tax benefit.
Sales in the three months ended Oct. 28 slid 11.1 percent to $418.7 million from $465.7 million, while same-store sales plunged 17.2 percent.
Bradlees is revamping its merchandise selection to stress more fashion apparel and private label in an effort to return to profitability through higher-margin products, according to papers filed in bankruptcy court.
In a statement last week, the discounter said it was taking steps to “reorient its business away from low- and no-margin businesses and low-margin promotional programs to more trend-driven, profitable business segments.”
On a net basis, Bradlees reported a third-quarter loss of $38.6 million after interest and reorganization expenses, partially offset by a tax benefit. In the year-ago quarter, Bradlees posted a $4.5 million profit before interest and debt expenses. After interest and debt costs, Bradlees lost $1.3 million.
Bradlees said it completed the quarter with $67 million in cash and no direct borrowings under its $250 million debtor-in-possession credit facility with Chemical Bank.
For the nine months, the Braintree, Mass.-based discounter had a loss of $108.7 million before interest, reorganization items and an income-tax gain. After interest and debt costs, Bradlees showed a net loss of $98.5 million.
In the year-ago period, Bradlees earned $3.4 million before interest, reorganization items and a tax gain. After the special items, Bradlees’ net loss was $11.3 million.
Sales dipped 2.9 percent to $1.25 billion from $1.29 billion, and same-store sales fell 11.8 percent. — Fairchild News Service