Ethan Allen Profits Slip
Danbury, Conn., Ethan Allen Interiors Inc. reported net income of $23.3 million for the quarter ended Dec. 31, down 4.5% from $24.4 million in the same quarter last year. Comparable Ethan Allen store-delivered sales increased 1.8% over the prior-year quarter. During that same period, retail division written sales increased 8.2% while comparable-store written sales increased 5.7%.
Sales were boosted during the quarter by increased distribution of its direct-mail magazine to 11 million magazines, up 33%. Net delivered sales for the quarter ended Dec. 31, 2004 increased 1.7% to $245.3 million from $241.2 million in the prior-year quarter.
Friedman’s Files Chapter 11
Savannah, Ga., Jewelry retailer Friedman’s filed voluntary petitions for reorganization under Chapter 11 on behalf of the company and nine of its subsidiaries. The company said the filing should provide it with the breathing room necessary to complete financial restructuring initiatives it embarked upon more than five months ago.
Blockbuster Still Committed to Hollywood Entertainment
Dallas, Blockbuster announced that it remains committed to pursuing an acquisition of Hollywood Entertainment despite the recent announcement of the entry into a definitive merger agreement by Hollywood and Movie Gallery.
“We are disappointed that the special committee of Hollywood’s board of directors elected to enter into a merger agreement with Movie Gallery without giving Blockbuster a fair opportunity to participate in the auction process,” said John Antioco, Blockbuster chairman and CEO. “While it no longer makes sense at this time for Blockbuster to commence a tender offer at $11.50 per share in light of the Movie Gallery agreement, we are evaluating the price that Blockbuster would be willing to offer for Hollywood in light of various factors, including the termination fee to Movie Gallery that is included in the merger agreement.”