Overstock liquidates unnecessary warehouse space
Overstock.com Inc. is making good on its promise to streamline operations to increase profitability.
Overstock, No. 25 in the Internet Retailer Top 500 Guide, is paying $1.9 million to Ozburn-Hessey Logistics, a Brentwood, TN, third-party logistics provider, for the early termination of a leasing agreement.
Overstock is paying the early termination fee for 400,359 square feet of rental space at a warehouse facility in Plainfield, IN. “The company has determined that the space covered by the leasing agreement is not necessary to our operations,” Overstock says in a recent regulatory filing. The original agreement was for five years.
Overstock is working to cut costs and improve profitability. Second quarter revenue declined 6% from the same quarter a year ago to $149 million from $159.2 million, the company reports. For the first six months of the year, which ended June 30, total revenue was down 9% to $306.9 million from $337.2 million. Net loss for the second quarter at Overstock was $13.8 million, down 12.7% from $15.8 million a year earlier.
In the first quarter, Overstock accrued $4.6 million of restructuring charges related to the Ozburn-Hessey Logistics termination agreement. Overstock also recorded $954,000 of restructuring charges for accelerated amortization of improvements in its corporate office facilities and $487,000 of other miscellaneous restructuring charges.
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