Oriental Trading Co. Files for Bankruptcy
Oriental Trading Co. Inc., the direct marketer of home décor products, toys, and novelties, filed Chapter 11 on August 25, 2010 in Wilmington, Delaware. Consolidated assets including its four affiliates, which also filed, were $463 million for fiscal year ended April 3 and liabilities totaled $756.6 million. Net sales were $485.4 million. It is looking to restructure its debt. If the proposed plan is accepted, first-lien lenders, owed $403.6 million, would wind up with new stock and a new $200 million second-lien note. The first-lien lenders have agreed to provide a secured $40 million credit for the Chapter 11 case. Upon confirmation of the plan, there would be a $50 million first-lien term loan to pay off the loan.
Bashas’ and Secured Creditors Reach Settlement
Secured creditors who filed an appeal over Bashas’ reorganization plan have since dropped the appeal after a deal was reached between the parties. As part of the deal, creditors will receive monthly payments instead of the annual payments called for in the reorganization plan, with the first checks going out next week. This removed the last major setback for Bashas’ to emerge from bankruptcy. Bashas' reorganization plan proposes repaying 100 percent of the company's debts with installments over the next three years and a lump-sum payout at the end.
Blockbuster To File Chapter 11
According to the Los Angeles Times, Blockbuster is preparing to file for bankruptcy in September. The story reported that Blockbuster is hoping to use Chapter 11 to restructure nearly $1 billion in debt and escape leases on 500 or more of its 3,425 U.S. stores. In August, the company announced that most of its debt holders had agreed to a forbearance on interest payments until Sept. 30, during which time it would attempt a recapitalization. According to the report, executives from Blockbuster and its senior debt holders held meetings with the six major movie studios to discuss their intention to enter a “pre-planned” bankruptcy in mid-September. It is critical that Blockbuster retains the support of Hollywood's film studios during the process so that it can continue to offer customers an uninterrupted supply of the latest DVDs.
Alimentation Couche-Tard Extends and Increases Takeover Bid
Alimentation Couche-Tard Inc, Canada's largest convenience store operator, has extended its takeover bid for U.S. rival Casey's General Stores until Sept. 30. It also increased the offer to $38.50 per share in cash. The new bid is 4.8 percent higher than the previous offer of $36.75, which itself was increased from its original April bid. The new offer is also 50 cents higher than the price at which Casey’s bought back stock last month. The offer is worth about $2 billion, including about $528 million in Casey’s net debt.
Staples Will Sell Amazon’s Kindle
Office supplies retailer Staples Inc will begin selling Amazon.com Inc's Kindle at its more than 1,500 U.S. stores starting this fall. It plans to sell the $139 version of the Kindle, the 3G model and the more expensive Kindle DX. Amazon, the world's largest online retailer, is trying to make its Kindle more readily available as it competes with devices such as Barnes & Noble Inc's Nook and Apple Inc's. iPad to win a larger share of the growing digital books market. In April, Target Corp reached a deal to sell the Kindle in its stores, while electronics retailer Best Buy Co Inc said it would sell the Nook at its 1,070 stores. Forrester Research estimates that Amazon has sold about 5 million Kindles since the product's launch in 2007, and that Barnes & Noble has sold 1 million Nooks since it introduced the device last year.
Gap Inc. Launches Dedicated e-commerce Sites
Gap Inc. announced that it has launched dedicated e-commerce sites for Gap and Banana Republic in Canada and Europe. Canadian orders will now be shipped by Canada Post from a dedicated fulfillment centre in Bolton, Ontario to allow for quicker in-country delivery, eliminating import and customs duties on orders. The European sites will initially be launched in the UK, but shipping will become available to nine additional countries this fall, including Belgium, Denmark, France, Germany, Republic of Ireland, Italy, Netherlands, Spain and Sweden.
Claire's to Launch Exclusive “Glee” Line
Twentieth Century Fox Consumer Products and Claire’s Stores, have announced a partnership to launch exclusive "Glee" Jewelry Collection and accessory lines on Sept. 3 with the introduction of three fully-branded Glee pop-up shops in the Los Angeles, Chicago and New York Metropolitan areas. These pop-up shops will be followed by a rollout of the line to over 1,500 stores across the U.S., Canada, and Puerto Rico on Sept. 9.
Billabong Completes Purchase of West 49
Aurora Inc., a wholly-owned subsidiary of Billabong International Limited has successfully acquired West 49 Inc. All of the outstanding common shares and preferred shares of West 49 Inc were purchased for a cash purchase price of C$1.30 per share.
With the completion of the plan of arrangement, West 49 Inc’s common shares are expected to cease to be listed for trading on the Toronto Stock Exchange on or about the close of business on September 1, 2010.
Gomes Gaming To Purchase Resorts Casino
Gomes Gaming Incorporated announced that it has entered into an agreement with RAC Atlantic City Holdings LLC to purchase Atlantic City's oldest casino, Resorts Casino Hotel. Resorts first defaulted on its mortgage in November of 2008 and foreclosure proceedings began in early 2009. Gomes Gaming, Inc. plans to return the Resorts Casino Hotel to profitability and its historic role of prominence in the Atlantic City market.
Tiffany & Co.'s 2Q Revenue Increased 9 Percent
Tiffany & Co.'s second-quarter net income rose 19 percent in the quarter ending July 31. The company earned $67.7 million, or 53 cents per share which is above the $56.8 million, or 46 cents per share, the company earned in the year-ago period. Revenue rose 9 percent to $668.8 million, below estimates of $690.2 million. Tiffany now expects net income to range from $2.60 to $2.65 per share this year, above its prior estimate of $2.55 to $2.60, which it had increased in May. Tiffany plans to open 14 new stores this year: five in the Americas, seven in the Asia-Pacific region and two in Europe. The company operated 223 stores and boutiques at the end of July, up from 211 a year earlier.
Rue 21 2Q Income increased 20 Percent
Rue 21 Inc. reported its second-quarter net income rose 20 percent, and its quarterly revenue rose 14 percent to $143 million. Rue 21's revenue at stores open at least a year fell 1.6 percent. Net sales for the second quarter increased 14.3% to $143.0 million, compared to $125.1 million in the second quarter of fiscal 2009 ended August 1, 2009. Net sales for the year increased 20.4% to $280.7 million from $233.1 million for the comparable period a year ago, which ended August 1, 2009. Year-to-date, the Company has opened 62 stores, closed two stores, and converted 22 stores to the rue21 etc! format.
Dollar General Sales Increased 10.8 Percent, Profit Jumps
Dollar General Corporation reported financial results for its fiscal 2010 second quarter ended July 30, 2010. Net income was $141.2 million in the second quarter compared to the net income of $93.6 million in the second quarter (13 weeks) of fiscal 2009. Sales increased 10.8 percent to $3.21 billion in the 2010 second quarter compared to $2.90 billion in the 2009 second quarter. Same-store sales increased 5.1 percent in the 2010 quarter and 8.6 percent in the 2009 quarter, with customer traffic and average transaction amounts contributing to the same-store sales increases in both periods.
Belk Inc Reports Second Quarter Results
Belk, Inc. reported total sales of $787.7 million for its fiscal second quarter ended July 31, 2010, an increase of 3.6 percent over the same 13-week period last year. On a comparable store basis, Belk sales were up 4.1 percent for the period. Belk’s year-to-date sales totaled $1,591.6 million, an increase of 4.6 percent compared with the same 26-week period last year. On a comparable store sales basis, year-to-date sales increased 5.3 percent over the prior-year period. Second quarter net income was $12.4 million, an increase of 31.9 percent compared to the same 13-week period last year.
Year-to-date net income increased to $36.8 million compared to $10.0 million for the same 26-week period last year. |
