Mothers Work Prepays $8 Million of Term Loan Debt
Philadelphia Mothers Work announced that it has prepaid $8 million of its senior secured Term Loan due March 2013, pursuant to the optional prepayment provisions of the Term Loan.
Together with its Term Loan prepayment of $5 million on March 19, 2008, the company has prepaid $13 million of its Term Loan over the past three months. Pursuant to the provisions of the Term Loan, such prepayments were made without any prepayment premium or penalty.
Giving effect to these prepayments, the company’s indebtedness under the Term Loan is now $76.1 million.
“We believe this action indicates our continued commitment to increase shareholder value and reflects our confidence in our generation of free cash flow despite a challenging overall economic environment,” said Edward M. Krell, COO and CFO of Mothers Work.
Pier 1 narrows 1Q loss
FORT WORTH, Texas Pier 1 Imports reported a net loss of $32.8 million or 37 cents per share for the first quarter versus $56.4 million or 64 cents per share reported for the same period last year, a 42% improvement over last year.
Total sales for the first fiscal quarter declined to $310 million from $356 million in the year-ago quarter. Comparable-store sales for the quarter declined 5.4%.
Commenting on the results, Alex Smith, president and ceo, said, “Throughout the quarter we continued to focus on our business priorities which are designed to return our company to profitability and beyond even in difficult times.”
Sears wants its MTV
NEW YORK Sears is partnering with MTV to launch a new movie musical, “The American Mall,” that gives the retailer a strong presence in the film and then takes that brand placement back to the stores.
“The American Mall,” directed by Shawn Ku, is the story of a group of young adults who work in a mall over the summer. The movie was filmed in Salt Lake City and Provo, UT, with several scenes shot in a local Sears store. Sears fashions have been integrated into the movie as part of the characters’ wardrobes. Plus, extras carry Sears shopping bags in the background. Co-branded commercials spots will air during the premiere of the movie on August 11.
Sears in-store experience zones will feature “The American Mall” character looks as created through consultation with the movie’s costume designer, Cynthia Summers. Licensed “The American Mall” merchandise and the movie DVD with a bonus disc featuring exclusive material will be available only at Sears. Additionally, four stars of the movie — Nina Dobrev, Rob Mayes, Bresha Webb and Rodney To — will be featured in the Sears circular and online wearing Sears fashions.
“We’re leveraging ‘The American Mall’ partnership at every possible touch point, which is really exciting for Sears, as MTV is a highly relevant brand for young adults,” said Richard Gerstein, senior vp and chief marketing officer for Sears. “As a retailer, it is important for Sears to provide offerings that are meaningful for students, while providing the all-important value for Mom.”