Ailing US retailer A&P has seen its second-quarter losses almost double on the back of falling sales – but the company said it had completed the first phase of a bid to revive the business.
A&P posted a US$153.6m net loss for the second quarter ended 11 September against an $80.3m loss in the same period of the previous year. Losses from continuing operations spiralled to $143m against $62m in the same period of last year.
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The company said its turnaround plan consists of five “key building blocks” – installing a strong management team, strengthening liquidity, reducing structural and operating costs, improving its value proposition and “enhancing the customer experience”.
Sales for the quarter were $1.9bn against $2.1bn in the same quarter last year, while comparable-store sales fell 6.6%.
Meanwhile, A&P said it was negotiating an agreement with its existing banks and several new lenders to add a new loan to its existing asset-backed facility. It has also closed 25 under performing stores and is working to reduce structural and operating costs.
See Also:
Click here for A&P’s full earnings statement; click here for comment from the retailer’s conference call with analysts.
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