Goody's reports $23 million loss in 3rd quarter
Wednesday, November 23rd 2005, 8:54 am
By: News On 6
KNOXVILLE, Tenn. (AP) _ Goody's Family Clothing Inc. on Tuesday reported a loss of $23.4 million in the third quarter, blamed largely on the price of breaking off with one suitor in favor of another.
The Knoxville-based retail chain said the loss for the 13 weeks ending Oct. 29 represented 71 cents a share, compared with a loss of $816,000 or 2 cents a share for the same period a year ago.
Goody's, which operates 371 stores in the South and Midwest, on Oct. 27 accepted a buyout offer of $327 million, or $9.60 a share, from New York investment firms Prentice Capital Management and GMM Capital.
Accepting that, Goody's had to pay a termination fee of $10.8 million and up to $3 million in expenses to Boca Raton, Fla.-based Sun Capital Partners to dissolve an earlier offer that spiked a three-week bidding war for the company.
Goody's said the third-quarter losses include $15.5 million in transaction expenses, mostly from termination charges.
Total sales for the quarter rose 3.7 percent to $295.2 million, compared with $284.8 million the year before, although sales for stores open at least a year were down 0.9 percent.
``The company will not achieve its previously announced business plan for fiscal 2005,'' a company statement said, adding that ``as a result of the pending sale of the company, the company ceased providing such financial guidance.''
Goody's operates stores in Alabama, Arkansas, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Mississippi, Missouri, North Carolina, Ohio, Oklahoma, South Carolina, Tennessee, Texas, Virginia and West Virginia.