CALDOR NOTES $49M LOSS IN 3RD QUARTER
NEW YORK — Caldor Corp., operating in Chapter 11 since Sept. 18, reported a loss of $49 million before reorganization costs and income taxes in the third quarter ended Oct. 28.
Caldor, the fourth-largest discount chain in the U.S., said third-quarter figures were hurt by a disruption in merchandise flow, when many factors and vendors cut the chain off prior to its bankruptcy filing. The weak retail environment, heavy promotional activity and an increased shrinkage reserve compounded the situation.
After a $4.3 million charge for reorganization costs and a $21 million tax gain, Caldor posted a net loss of $32.6 million. In the year-ago quarter, the 166-unit discounter registered a profit of $1.1 million, or 6 cents a share.
Sales in the period declined 5.4 percent to $591.4 million, and same-store sales tumbled 11.4 percent.
Caldor said that at the end of the quarter, it had available $231 million of its $250 million debtor-in-possession facility with Chemical Bank, in addition to $96 million in cash.
The discounter added that it had no direct borrowings under the DIP, other than for letters of credit, and is receiving shipments from “virtually all” of its factors and vendors. But Caldor noted that changes in vendor terms caused by the filing “may continue to affect margins.” — Fairchild News Service