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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