Apparel retailer Harold's registers disappointing Dec sales
07 Jan '06
3 min read
They had originally believed that their mix of inventory, which favored new resort and lower levels of fall and winter versus 2004, would work to their advantage, but quantities proved insufficient.
Moreover, the very spring-like resort apparel, which was delivered to the stores December 1, could not offset the demand for wear-now apparel.
The Company has undertaken a thorough review of its full 2006 seasonal plans to ensure proper timing and quantity of merchandise throughout the year."
The Company's principal shareholder has indicated his intention to provide an additional $3 million of funding for the Company, on terms to be negotiated by the Company and the shareholder.
This additional funding is expected to supplement the Company's existing bank working capital facility, to support the 2006 merchandise initiatives and the opening of replacement stores in Greenville, South Carolina and Charlotte, Noth Carolina and new full-line locations in Montgomery, Alabama and Little Rock, Arkansas during 2006.
Completion of the transaction is subject to documentation and negotiation of final terms, and provided there are no unexpected issues, closing should take place by the end of January 2006.
Founded in 1948 and headquartered in Dallas, Texas, Harold's Stores Inc currently operates 41 upscale ladies' and men's specialty stores in 19 states. The Company's Houston locations are known as "Harold Powell."
marketing@alchempro.com
