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Article: DON'T DISCOUNT TURNAROUND, SAYS BANKRUPT LOEHMANN'S: RED INK MOUNTS, BUT GOODS FLOW; RETAILER SAYS IT'S READY FOR HOLIDAYS.
- Article from:
- Crain's New York Business
- Article date:
- September 20, 1999
- Author:
CopyrightCOPYRIGHT 1999 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Despite a mammoth second-quarter loss, bankrupt retailer Loehmann's Inc. says it expects to present a plan by November to emerge from Chapter 11 and to do so next spring.
The chain, which filed for Chapter 11 protection in May, had a net loss of $31.9 million in the quarter ended July 31, after $21.1 million in reorganization costs. A year before, losses totaled $2.2 million.
Sales dipped 7.3%, to $89 million, in the latest quarter, and same-store sales declined 7.7%.
Crucial season
Continued operating losses and negative cash flow are putting pressure on Loehmann's, and the chain will need to turn a profit in the critical ...