Bombay Exploring “Strategic Alternatives”

March 22, 2007  by in UnCategorized   

By Home Furnishings Business in on March 2007 In announcing a $52.8 million net loss for its most recent fiscal year, The Bombay Co., Fort Worth, Texas, said it has hired William Blair & Co. to “explore strategic alternatives that would provide additional liquidity” to enable the company to return to positive cash flow. The company operates 441 stores.

The announcement did not state what those alternatives might be. The company did see some positives in its annual results, including an uptick in fourth-quarter revenues and signs that its efficiency initiatives are having positive results. In the fourth quarter, revenue increased 0.7 percent to $188.2 million, while same-store sales decreased 3.1 percent. The net loss for the quarter ended Feb. 3 was $1.7 million, a sharp decline from the $25.1 million loss the company posted in the same quarter a year earlier.

For the year, revenues decreased 5.1 percent to $536.3 million. The $52.8 million loss for the year exceeded the $46.7 million in the prior fiscal year.

“Although we are disappointed with our 2006 financial results, we are very pleased with our accomplishments during the year, which included renegotiating lending agreements, restructuring for cost reductions and efficiency, and continued strong growth in our direct-to-customer business,” said CEO David Stewart. “Our increased fourth-quarter revenues are reflective of these efforts and encouraging in light of the continuing difficult conditions in the retail sector. It is particularly noteworthy that we were able to grow our fourth-quarter sales with a reduced marketing spend. Our current focus is on continued execution of our stabilization plan to return the company to positive cash flow and improved operations.”