Report: Linens ’n Things May File Restructuring Plan
Clifton, N.J. Linens ’n Things could file a plan to reorganize its business as early as Friday, according to the New York Post.
The restructuring plan states that the chain will close as many as one third of its existing stores, the report said.
The bid to downsize Linens ’n Things comes on the heels of bondholders’ threats to liquidate the company.
The retailer was bought for $1.3 billion in 2005 by billionaire Leon Black’s buyout firm Apollo Management. Linens ’n Things filed for Chapter 11 bankruptcy protection in May, hurt by a slowdown in consumer spending due to higher energy and food prices.
The chain expects this move to help it emerge from bankruptcy early next year.
Zale reports 2Q loss
DALLAS Zale Corp. reported a net loss from continuing operations for the fourth quarter of fiscal 2008 of $4.9 million, or 15 cents per share, compared to net earnings from continuing operations of $0.7 million, or 1 cent per diluted share, for the fourth quarter of fiscal 2007.
Revenues for the fourth quarter ended July 31 were $456 million compared to $430 million last year, an increase of 6.1%. Comparable store sales for the fourth quarter increased 6.1%.
For the full year ended July 31, 2009, the company expects diluted EPS in the range of $1.10 to $1.25. Comparable-store sales are expected to be in the range of negative 1% to flat.
DSW posts 2Q sales, income growth
COLUMBUS, Ohio DSW announced net income of $11 million on net sales of $357.2 million for the second quarter ended Aug. 2, compared with net income of $6.5 million on net sales of $348.7 million for the second quarter ended Aug. 4, 2007. Same-store sales decreased 6.9% for the comparable period versus an increase of 5.9% last year.
Diluted earnings per share were 25 cents for the second quarter this year compared with 15 cents last year. The company said the year-over-year increase in second quarter earnings was attributed to merchandise margin rate.
For the fiscal year ending Jan. 31, 2009, the company reiterates its estimated annual same-store sales in the negative mid-single digits and annual earnings per diluted share in the range of 75 cents to 85 cents.