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Wednesday, 14th December 2005 (5498 views)

US-based Whitehall Jewellers says it will still be a force to be reckoned with this yuletide, despite posting heavy losses and raising the prospect of heavy store closures.

The company posted a net loss of $42.9 million for its fiscal third quarter to October, while sales sunk seven per cent year-on-year to $63.3 million.

It confirmed it plans to shut 77 unprofitable stores by February 2006 in a bid to close the deficit, as well as liquidating $44 million of inventory.

But Whitehall CEO Robert Baumgarner has vowed that "the company is focused on the Christmas selling season".

"Thanks to the support of our investors, banks and, in particular, the vendor community, the company has received the assortments necessary to compete during the holiday season," he added.

Whitehall's largest shareholder, Newcastle Partners, recently emerged as a likely new owner of the Chicago-based jewellers as it announced intentions to put in an offer.

The jeweller owns the Lundstrom and Mark Bros. brands and currently boasts a total of 386 stores scattered across 38 US states.

 

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