Jennifer Convertibles Loss Grows in Fourth Quarter
November 30, 2010,
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.
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.