follow us

Spiegel gets OK to sell Newport

Embattled catalog retailer Spiegel Inc., working its way through a painful bankruptcy and a gradual dismembering of its retail operations, has received a green light from a U.S. Bankruptcy Court judge to sell its Newport News women's fashion unit.

Spiegel said it's selling the Newport News unit to Pangea Holdings Ltd., an investment company, for $28.6 million.

Separately, in a further winding down of operations, Spiegel put up for sale its profitable Eddie Bauer division.

The bankrupt retailer reported a narrowed first-quarter loss of $100.5 million, down from a year-before loss of $114.2 million, as it slashed costs and put behind it a $71.9 million loss from discontinued operations that pulled down the bottom line a year ago.

Spiegel retail sales tumbled 25.9 percent, to $264.4 million from $356.7 million last year, a shortfall of almost $100 million.

Working to cut its losses, Spiegel whittled its costs 27.7 percent, to $139.8 million from $193.2 million, yielding a savings of more than $53 million.

Measured as a percentage of shrinking sales, costs declined to 52.9 percent from 54.2 percent. Average gross margin contracted to 35.5 percent from 36.8 percent.

Taking a big bite out of the bottom line, bankruptcy costs amounted to $11.9 million, up 51.6 percent from $7.8 million the preceding year.

Spiegel Inc.

Qtr. 4/3 (x000) 2004 2003 % chg
a-Retail sales, excluding $25.1 million in other revenues, down 28.9 percent from $35.2 million a year ago. Total revenues declined 26.2 percent, to $289.4 million from $391.9 million during the same period in 2003.
b-First-quarter results include $11.9 million in bankruptcy costs, compared with $7.8 million last year; a $6.5 million loss from discontinued operations, compared with a $71.9 million year-before loss; and an expected loss on the sale of discontinued operations of $58.7 million.
Sales $264,350a $356,694a -25.9
Oper. income (EBIT) (20,942) (26,837)
Net income (100,543)b (114,234)b
Per share (diluted) (0.76) (0.87)
Average gross margin 35.5 36.8
SG&A expenses 52.9% 54.2%

Featured Video

  • Online Moves From Afterthought To Main Thought For Textiles Suppliers

    Camera Icon More Videos

Other Home Furnishings Sites

Casual Living
Gifts and Decorative Accessories
Home Accents Today
Kids Today
Furniture Today