50-OFF Stores Inc. completes store performance review and announces store closings and cost reductions.SAN ANTONIO San Antonio (săn ăntō`nēō, əntōn`), city (1990 pop. 935,933), seat of Bexar co., S central Tex., at the source of the San Antonio River; inc. 1837. , Texas--(BUSINESS WIRE)--March 14, 1995--San Antonio based off-price retailer 50-OFF Stores, Inc. announced the completion of a comprehensive store performance review and its resulting decision to cease operations at 12 additional stores, bringing its announced store closings since the beginning of fiscal 1994 to 28: nine during fiscal 1994, seven during fiscal 1995 and 12 to be closed during fiscal 1996 which began Feb. 4, 1995. The pre-tax costs related to the closing of these 12 stores, estimated at approximatley $4.9 million, will be charged to fiscal 1995 fourth quarter operating results and, when coupled with the closing costs Closing Costs The numerous expenses (over and above the price of the property) that buyers and sellers normally incur to complete a real estate transaction. Costs incurred include loan origination fee, discount points, appraisal fee, title search, title insurance, survey, taxes, associated with the previously announced seven closings during fiscal 1995, will result in an approximate $6.1 million pre-tax charge for store closing costs to fiscal 1995 operating results. These announced closings are expected to complete the company's store consolidation program begun after years of rapid expansion; 95 stores were opened during fiscal 1990 through fiscal 1994. Such consolidation program has primarily involved exiting certain smaller markets which proved unable to support a store and certain other markets in which it would have been cost prohibitive pro·hib·i·tive also pro·hib·i·to·ry adj. 1. Prohibiting; forbidding: took prohibitive measures. 2. to open the number of stores required to effectively develop such markets' potential at this time. While it is the company's long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. development plan to expand its regional presence in new and existing markets, new store openings have been limited in number, and limited to existing market areas where the store base was underdeveloped un·der·de·vel·oped adj. Not adequately or normally developed; immature. . By the end of fiscal 1996, it is expected that the company, which currently operates 109 stores, will operate 102 off-price retail stores in 11 states in the South. The company also announced the implementation of cost and personnel reductions, including a 25 percent reduction in personnel, a 19 percent reduction in wages and benefits and a total reduction of over $1 million in fixed costs fixed costs, n.pl the costs that do not change to meet fluctuations in enrollment or in use of services (e.g., salaries, rent, business license fees, and depreciation). at corporate headquarters alone. Management and staff responsibilities have been realigned, and related compensation has been substantially reduced, relatively and absolutely, to achieve permanent efficiencies without compromising performance. CONTACT: 50-OFF Stores, Inc., Pat L. Ross Ross , Sir Ronald 1857-1932. British physician. He won a 1902 Nobel Prize for proving that malaria is transmitted to humans by the bite of the mosquito. , 210/805-9300 |
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