Steve & Barry’s Files for Bankruptcy Protection
Port Washington, N.Y. Steve & Barry’s LLC said Wednesday that it filed for Chapter 11 bankruptcy protection, according to the Associated Press.
It also announced that it was considering a plan to sell all or some of its assets to repay outstanding debt.
The chain, which operates 276 locations in 39 states, said that it and 63 of its affiliates filed the petition in the U.S. bankruptcy court for the Southern District of New York.
Company officials blamed a cash crunch as a result of the tighter credit markets and general sluggish economic conditions. These factors hurt its plans to open stores and its ability to borrow money, the report said.
“The generally poor environment for apparel retailers has reduced funding to our suppliers, landlords and to our company,” Steve Shore and Barry Prevor, co-founders and co-CEOs, said in a statement. “It has become increasingly difficult for us to continue operating normally under these circumstances.”
They also noted that speculation in the marketplace about the company’s cash issues in recent weeks became “self-fulfilling prophesies.” They said that many suppliers cut off access to services and supplies. They also noted that landlords stopped remitting “contractually owed payments for construction and store opening work” it performed.
“As a result of all of this, our loans have gone into default, and we have had no alternative but to file Chapter 11 to enable continued operations.”
Walgreens to reduce drug store growth
DEERFIELD, Ill. Walgreens reported that it plans to reduce its organic drug store growth from about a 9% increase for the current fiscal 2008 year to about 6% in fiscal 2010 and to about 5% annual increases beginning in fiscal 2011.
Previously, the company had planned a long-term store growth rate of 8 %. New store openings that are already in the pipeline are expected to result in approximately 8% organic store growth in fiscal 2009.
According to Walgreens, its planned future expansion rates are the equivalent of opening about 495 net new organic stores in fiscal 2009, 425 in fiscal 2010 and 365 in fiscal 2011. These new growth targets resulted from the company’s regular review of its growth and capital expenditure plans.
“This move allows us to improve both return on invested capital and overall shareholder value,” said Walgreens chairman and ceo Jeffrey Rein. “At the same time, it gives us the flexibility to invest in our core strategies.”
Tuesday Morning 4Q sales drop 10.4%
DALLAS Tuesday Morning reported net sales for the fourth quarter ended June 30 were $196.5 million compared to $219.4 million for the quarter ended June 30, 2007, a decrease of 10.4%.
Comparable-store sales for the quarter ended June 30 decreased by 12.7% comprised of an 11% decrease in traffic and a 1.8% decrease in average ticket.
Based on the fourth quarter sales results, the company currently expects diluted earnings per share for the fourth quarter to be in the range of (5 cents) to (8 cents) compared to 5 cents for the same period last year.