Jennifer 4Q Sales up 11.8%, Loss Increases

November 28, 2010  by in UnCategorized   

By Home Furnishings Business in Financial Reports on November 29, 2010

Furniture retailer Jennifer Convertibles (OTC: JENNQ) reported Friday that fourth-quarter 2010 sales increased 11.8 percent to $19.99 million.

Woodbury, N.Y.-based Jennifer Convertibles lost $6.28 million during its fourth fiscal quarter, which ended August 28, compared with a $5.3 million loss for the prior-year period. Comparable store sales decreased by 13.2 percent for the fourth quarter.

For the fiscal year 2010, revenue from continuing operations increased 4.1 percent to $76.3 million; and the retailer lost $24.3 million, compared with a fiscal 2009 loss of $11 million. Comparable store sales fell 14.2 percent for the year.

Jennifer Convertibles closed 52 stores during its fourth quarter, 69 for fiscal 2010.

With respect to the company's previously disclosed voluntary petition for Chapter 11 bankruptcy, Jennifer has filed plan of reorganization and accompanying disclosure statement and a motion seeking authorization to enter into a debtor-in-possession financing agreement with its principal supplier, all of which are subject to the bankruptcy court's approval.

Harley J Greenfield CEO of Jennifer, commenting on the results of Fiscal 2010 said, "Despite the financial difficulties we have experienced, culminating with filing bankruptcy in July, we have continued to provide customers with extreme value merchandise and excellent customer service," said Jennifer CEO Harley J. Greenfield. "We intend to emerge from bankruptcy as a stronger company. In our Jennifer Division we have been able to restructure leases, close unprofitable stores, and focus on our strong markets. Our Ashley HomeStores Division continues to mature and should continue to make a significant contribution to the Company."

Jennifer Convertibles is the owner and licensor of the largest group of sofabed specialty retail stores in the United States, with 72 Jennifer Convertibles stores; has eight Jennifer Leather stores; and operates six licensed Ashley Furniture Homestores.