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50-Off files for Ch.ll protection
SAN ANTONIO - The off-price apparel segment showed further consolidation with the Oct. 9 Chapter 11 filing of 98-store Southeastern chain 50-Off Stores. Ceo Charles "Hop" Fuhrmann, a former investment banker at Merrill Lynch who was brought on in May, told DSN, "Our major creditors are both disappointed and supportive." He said the company's options include strategic alliances or an outright sale of assets.
The chain lost $6.8 million on 1995 sales of $175 million, after an $8.0 million loss the year prior. First-half '96 sales were $64.1 million, with a $9.7 million before-tax loss.
GOB sales have already begun at 38 stores, while 41 sites continue to operate normally. As of the filing, the chain had converted 19 units to its new general merchandise closeout format dubbed Lot$Off. Its preferred plan under bankruptcy protection is to convert all units to Lot$Off, where Fuhrmann said sales are tracking "30% to 70% better" than the...