Losses Continue, But Get Smaller, at Interco
ST. LOUIS (AP) _ Interco Inc.’s losses improved to $16.2 million in the first fiscal quarter and sales were down slightly, the shoe and furniture company said Monday.
The maker of Converse and Florsheim shoes and Broyhill furniture sought bankruptcy court protection in January after negotiations failed to restructure more than $1.65 billion in debt. Much of the debt was in the form of high-yield bonds that were issued three years ago to fend off a hostile takeover attempt.
For the quarter, which ended May 31, the $16.2 million, or 42 cents per share, loss compared with a loss of $41.2 million, or $1.68 per share, in the same period a year ago. Interco reported sales of $349.5 million, down 2 percent from $357.9 million for the same period a year ago.
Interco, based in St. Louis, is the parent company of four well-known companies - footwear makers Converse Inc. and Florsheim Shoe Co. and furniture manufacturers The Lane Co. and Broyhill Furniture Industries, Inc.
The company said sales and operating earnings were ″better than anticipated″ in light of the weak economy and the amount of time company executives have spent on the bankruptcy reorganization.
Sales declined across-the-board at the company and Interco executives continued to point out that the Chapter 11 filing was having a substantial financial impact on the company.
″It is in the best interests of all parties that a Chapter 11 plan of reorganization be submitted by the company and confirmed as soon as possible,″ the company said in a statement.
In the furniture group, sales were $198 million, down from $204 million for the same period last year. In the footwear group, sales fell to $150 million from $153 million.
One bright spot for the company was a boost in sales at Converse, which helped increase operating earnings in the footwear group to $4.3 million from $4.1 million a year ago.