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May 16, 2002

USA: Dairy Mart reports US$63.2m, CEO speaks of uncertainty over group’s future

Hudson-based Dairy Mart Convenience Stores Inc. will report a US$63.2m loss in its fiscal year results. Double the US$29.4m net loss reported in fiscal 2001, Dairy Mart attributes the result to costs related to its bankruptcy proceedings, as well as the costs of closing unprofitable stores.

Hudson-based Dairy Mart Convenience Stores Inc. will report a US$63.2m loss in its fiscal year results.

Double the US$29.4m net loss reported in fiscal 2001, Dairy Mart attributes the result to costs related to its bankruptcy proceedings, as well as the costs of closing unprofitable stores.

The company is delayed in filing its results, which should have been completed earlier this month. Official results will not be available until 24 May.

Dairy Mart has gone through a turbulent year. CEO Robert Stein left the company after an aborted attempt to take the company private in July, and was succeeded by Greg Landry. Shortly after, the group filed for federal bankruptcy protection, claiming US$220.7m in debts and assets of US$190.7m.

From a base of 1400 stores, Dairy Mart now has just 450 stores, primarily in Ohio and Kentucky. Since the bankruptcy filing in September, the group has closed about 100 stores.

The group now has until 4 June to file a restructuring plan with the US Bankruptcy Court for the Southern District of New York. Already acknowledging that this deadline is not realistic, Landry said the group will be asking for a further extension.

“We have a responsibility to maximise the value of the company, and I don’t know if that is going to be through the company emerging through bankruptcy as a standalone company or if it will be acquired,” he said. “I truly today do not know which direction we will end up going in.”

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