Office Max consolidates credit lines
Naperville, Ill. — OfficeMax on Friday said it is amending two credit lines and consolidated them into a new $650 million revolving credit facility that expires in October 2016.
The two existing agreements included a $700 million U.S. credit facility and a $60 million Canadian facility ($59.1 million U.S.) that were set to expire in July 2012.
There are currently no outstanding borrowings under the facility.
Q2 results make 99 Cents Only an attractive buy
COMMERCE, Calif. — The investment group that agreed to buy 99 Cents Only Stores for $1.6 billion must be pleased with the discounter’s second-quarter results.
99 Cents Only Stores reported total sales of$363 million for the second quarter, an increase of 8.8% over total sales of $333.6 million for the same quarter last year. Same-store sales for the quarter were up 6.7%.The number of same-store-sales transactions increased 4.7% and the average transaction size increased to $9.62 from $9.44, the company reported.
Eric Schiffer, CEO, commented, "We are pleased to report that we achieved 6.7% same-store sales growth in the second quarter, which was above our expected range of low single digit comparable sales. We believe these results underscore the strength of our business model. We have now raised our comparable sales expectations for the full year to mid-single digits."
During the second quarter of fiscal 2012, the company opened two stores in Southern California and one in Nevada. The gross and saleable retail square footage at the end of the second quarter each increased 3% over last year to 6.11 million and 4.8 million, respectively, based on 288 stores.
99 Cents Only Stores said in an earlier announcement that it has agreed to be acquired by a group of investors including its founding family, Ares Management and Canadian Pension Plan Investment Board for $1.6 billion in cash.
The announcement ends a months-long sales process, which started with a takeover offer from Leonard Green & Partners in March.
Dot-com departure at Target
Target announced that Steve Eastman, president of Target.com, left the retailer to pursue other opportunities. Eastman’s departure follows a late August relaunch of Target.com.
The relaunch process did not go smoothly as Target brought its online operations in house after a lengthy relationship with Amazon.com. Target’s goal was to reinvent the online environment and create a user-friendly and reliable experience, but that proved not to be the case initially as critics panned the site design and there were difficulties with functionality. Target involved 20 technology partners in the two year development process.