Blue Holdings names new ceo
COMMERCE, Calif. Blue Holdings Inc., a designer, manufacturer and distributor of high-end fashion jeans and denim apparel, today announced the appointment of Glenn Palmer as ceo and president, effective immediately. Palmer brings 30 years of corporate finance, operations and apparel industry experience to Blue Holdings, having served in a broad range of senior management roles at Cerberus Capital Management, Amerex Group, Inc., Best Manufacturing Group, LLC, Liz Claiborne, Bonaventure Textiles USA and Ellen Tracy.
Current ceo and president Paul Guez will continue to serve as chairman of Blue Holdings’ board of directors. Guez will continue to be very active in the strategic direction of the company, as well as focusing on further developing the global licensing business.
Prior to joining Blue Holdings, Palmer was at Cerberus Capital Management, a leading private investment firm, where he served as ceo and president of Rafaella Apparel Group, a $250 million apparel manufacturing company. In this position, he led a $172 million debt financing and effectively managed the company through the Federated/May Company acquisition.
Book retailers see sales magic with Harry Potter
ANN ARBOR, Mich. and NEW YORK Borders Group announced Sunday that its more than 1,200 Borders and Waldenbooks stores around the globe sold approximately 1.2 million copies of “Harry Potter and the Deathly Hallows” on its first day of sales, Saturday, July 21. According to the company, this is the highest single-day sales of any title ever in Borders history. This first-day sales total for book seven — the final book in the Harry Potter series — compares to 850,000 copies sold worldwide by Borders of book six, “Harry Potter and the Half-Blood Prince,” its first day of sales in 2005.
Barnes & Noble Inc. also saw strong sales of the latest Harry Potter installment, selling a record 1.8 million copies in the first 48 hours of its release at its retail stores and on Barnes & Noble.com (www.bn.com). In the first hour, Barnes & Noble bookstores sold 560,000 copies or 156 copies per second. According to the company, sales for the first 48 hours of Harry Potter and the Deathly Hallows were 38% greater than sales of Rowling’s previous book, “Harry Potter and the Half-Blood Prince.”
Movie Gallery lenders agree to forbearance
DOTHAN, Ala. Movie Gallery Inc. today announced that the company and certain lenders under its First Lien Credit Facility have executed a forbearance agreement that is effective as of July 2. Under the agreement, the senior lender group will forbear until August 14 from exercising rights and remedies arising from existing defaults, absent any new defaults under the senior credit facility or the forbearance agreement.
Joe Malugen, chairman, president and ceo of Movie Gallery, said, “We are pleased to be working cooperatively with our lenders to address the company’s current financial situation. In the near future, we expect to present a longer-term solution to the lender group that will address the operational and financial issues currently impacting our business. Meanwhile, our plan is to operate our stores and, together with our outside advisors, execute on our plan to conserve cash and improve profitability. We appreciate the strong support of our customers, the continued dedication of our employees, and the cooperation of our trusted business partners as we work through this challenging period.”
Earlier this month, Movie Gallery said it was unable to meet loan payments for its quarter ended July 1 and is exploring restructuring alternatives that include a possible sale of the company.
Movie Gallery has been saddled with declining sales for more than a year and reported a $14.9 million loss in the first quarter of 2007 compared to a profit of $40.3 million the same period last year. The chain also reported a 6.7% drop in first quarter revenue, a 5.9% decline in same-store sales and closed 184 stores.