Jennifer Convertibles Loss Grows in Fourth Quarter
WOODBURY, N.Y.--Jennifer Convertibles, which has been under Chapter 11 bankruptcy protection since July, reported a net loss for its final fiscal quarter of the year of $6.3 million, compared to a fourth-quarter net loss of $5.3 million in its prior fiscal year.
Net sales for the quarter, which ended on Aug. 28, rose nearly 12 percent to $19 million, but this included a same-store sales decrease of 13.2 percent. In addition, the retailer's gross margin dropped 792 basis points to 20.6 percent.
The company closed 52 stores in the fourth quarter, bringing the total of shuttered locations for the fiscal year to 69. The operating losses of 53 of these locations were included as a $2.2 million loss in the fourth-quarter results, which further hurt Jennifer Convertibles' bottom line. Selling, general and administrative expenses were flat on a dollar basis and declined 400 basis points as a percentage of sales to 31.7 percent.
For the fiscal year as a whole, Jennifer Convertibles' net loss totaled $24.3 million, more than double its net loss from the prior fiscal year. Net sales were $72.5 million, up 4.6 percent. But same-store sales fell 14.2 percent.
The company filed a plan of reorganization with the bankruptcy court on Nov. 19, which included authorization for debtor-in-possession financing. In its statement announcing the financial results, the company said it intends to emerge from Chapter 11 as a going concern, but that there is no assurance of the acceptance of the plan or that it will be able to continue in business.