Private investment firm Comvest Partners acquires the financially troubled e-retailer, which filed for Chapter 11 bankruptcy protection in March.
For the fiscal year, web sales at apparel manufacturer and retailer New York & Co. rose 83.7% to $41 million, up $18.7 million from $22.3 million a year earlier.
For the fiscal year, web sales at apparel manufacturer and retailer New York & Co. Inc. rose 83.7% to $41 million, up $18.7 million from $22.3 million a year earlier.
Total net sales for the fiscal year were down $55 million to $1.14 billion from $1.19 billion. Same-store sales for the year fell 8.6% compared to a decline of 1.3% a year earlier. Web sales accounted for 3.7% of total sales compared with 1.8% a year earlier.
The company did not release its fiscal Q4 web sales. Total sales for fiscal Q4 were $325.1 million down 9.5% or $34.3 million compared to $359.4 a year earlier. Same-store sales for fiscal Q4 fell 10.9% compared with a same-store sale decrease of 3.5% a year earlier.
New York & Co. posted a fiscal year loss of $20.3 million, versus net income of $26.7 million a year earlier. The retailer reported a Q4 loss of $27.6 million compared with income of $11.2 million a year earlier. Adjusted net loss for the year from continuing operations was $3.2 million. That figure excludes pre-tax charges of $24.5 million incurred with the company’s restructuring and cost reduction program, $1.5 million related to two class action lawsuits, and $2.5 million related to management changes in the third quarter.
“The fourth quarter of fiscal 2008 marked a challenging period for our company, as the extremely weak economic environment and the resulting impact on consumer spending in the retail sector reduced sales and gave rise to a highly promotional environment which affected profitability,” says New York & Co. CEO Richard Crystal. “In this difficult environment we continue to conservatively manage all aspects of our business including inventory, capital expenditures, cash and expenses. Importantly, we ended the year with a strong balance sheet and made solid progress on our merchandising initiatives.”
In fiscal 2008, the retailer implemented a restructuring and cost reduction program, which is expected to generate approximately $175 million in savings over the next five years. New York & Co expects $30 million in cost savings in fiscal 2009.
New York & Co. is No. 303 in the Internet Retailer Top 500 Guide.