From Home Furnishing Business
Stanley Expects Larger Q4 Loss Due to Inventory Sale
Stanley Furniture (NASDAQ: STLY) said it expects to report a larger-than-expected net loss of $7.5 million in the fourth quarter due to additional losses on the sale of obsolete inventory.
The company, which has agreed to sell substantially all of its assets to an entity owned by the chairman of the Vietnam Trade Alliance, said in a Securities and Exchange Commission filing that the inventory was sold below cost, which resulted in additional charges of $800,000 to the bottom line.
In an earlier SEC filing, Stanley said it would report a fourth-quarter loss of about $6.7 million on sales of $11.9 million.
The earlier filing included a write-down of $3.3 million for obsolete inventory and a $1.7 million charge related to former CEO Glenn Prillaman’s severance package and the resignations of two members of the board of directors.
The company has not announced a date to release complete financial results for the quarter. A special shareholders meeting to vote on the proposed $18.4 million sale is scheduled for March 2.