Wilderness Faces Wider Losses
A shortage of cash in the critical Christmas season will result in slashed sales and widened losses at Chatsworth-based Wilderness Experience, the company said.
The money-losing maker of outdoor gear said the funding shortage meant it could not take delivery of some imported ski wear. It said it has been unable to raise additional working capital since Union Bank, its main lender, refused in September to advance any more funds.
Ted Weiland, the chief financial officer, said the company would post a loss in its fourth quarter ended Oct. 31. Sales for the first quarter, which ends Jan. 31, also will be “adversely affected,” he said.
For the nine months ended July 31, the company lost $532,000 on sales that dropped 38.4% from a year earlier to $2.9 million.
The company also announced the resignation of Gene Froelich, a Wilderness Experience director since February. He said he quit to pursue other business interests. No replacement was named.
About two weeks ago, Gregory Thomsen resigned as company president. He was replaced by Bernard Kramer.
Allied-Signal, the biggest shareholder of Patlex, said it plans to sell its 14% stake in the Chatsworth-based laser company.
Allied-Signal will offer its 760,368 shares of Patlex to other shareholders of the Chatsworth laser concern for between $8 and $10 a share, substantially less than their market price, in order to move the entire block, a spokesman for the New Jersey conglomerate said.
Trading over the counter, Patlex closed Monday at $15.87 1/2, down 37 1/2 cents.
Allied-Signal’s predecessor, Allied Corp., acquired the shares in June, 1985, in exchange for its former Apollo Laser division, which it sold to Patlex.
Patlex shareholders will be entitled to buy 16 shares for each 100 owned as of the record date, which has not yet been announced. If there are any shares left, Patlex shareholders will be permitted to buy more.
But subscription rights will not be transferable, and if Patlex shareholders do not buy all the shares offered, the public will get a crack for $1 a share more than the special discount price.
An Allied-Signal spokesman said the company simply decided to take its profits. Patlex shares have risen about fourfold in the roughly 17 months since Allied first acquired them.
According to Patlex, a sale to existing shareholders will probably mitigate the potential dampening effect of such a large sale on the price of the thinly traded shares. No date for the sale has been set, because Allied-Signal must await SEC clearance of its registration for the sale.
Patlex owns a 64% interest in several key laser patents or potential patents, and also makes lasers.
