Heilig-Meyers reports $1.6M net loss in Jan.
By Furniture Today Staff -- Furniture Today, March 24, 2002
RICHMOND, Va. — RICHMOND, Va. — Heilig-Meyers posted a $1.6 million net loss in January and a net loss of $302.8 million for the first 11 months of its fiscal year, as charges associated with closing the bankrupt retailer's core stores continued.
Sales for the company, which today operates about 67 RoomStore room package specialty stores, were $26.8 million in January and $368.5 million for the 11 months ended Jan. 31, some of the latter coming from Heilig-Meyers stores now closed.
The bulk of the loss for the 11 months — $220.8 million — is tied to reorganization items, primarily from store and distribution center exit costs.
The January results are close to what the surviving RoomStore chain is doing, said Ron Barden, managing director of reorganization, although the month's bottom line suffered from some "operating-type expenses from the wind-down of Heilig."
According to a Securities and Exchange Commission document, Heilig-Meyers paid $299,000 in professional fees and $11,000 in trustee fees, both listed as reorganization items in January.
Heilig-Meyers filed for Chapter 11 bankruptcy protection in August 2000 and subsequently shut or sold off all but its RoomStore division, now headed by President Curtis Kimbrell.
Kimbrell has been trying to pull The RoomStore from under the wing of its bankrupt parent and have it emerge as a super regional chain with annual sales of about $310 million.
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