Tweeter to Close 19 Stores
Tweeter Home Entertainment Group announces plans to close 19 stores, according to the company, which announced its earning results for the second fiscal quarter ending March 31, 2005. Tweeter expects to reduce its total workforce by approximately six percent as a result of the store closings. According to company reports, the closings represent almost 11 percent of all stores and 4.7 percent of revenue.
Total revenue from continuing operations decreased one percent to $185 million from $186 million in the same period last year while comparable store sales from continuing operations decreased four percent, says Tweeter. Operating loss from continuing operations for the quarter, according to Tweeter, totals $7.9 million. In addition, vehicle costs, insurance costs, and financing fees contributed to these financial figures, the company says.
Tweeter reports that store closing will cost between $25 and $30 million, most of which will occur during the June quarter. Of these expenses, approximately $9.7 million is non-cash charges in the form of fixed asset write-offs, with the balance coming from estimated lease terminations, severance and other related closing costs.