Wilderness Experience, the troubled Chatsworth maker of outdoor and camping equipment, reported a $1.7-million profit for the third quarter that ended July 31. But the profit was the result of an accounting change because the company’s debts were reorganized as it emerged from Chapter 11 bankruptcy protection. The company showed a loss of $315,500 from operations on sales of $191,300 in the third quarter.
For nine months, the company posted an $857,000 loss from operations on sales of $671,400. For the same period a year earlier, the company had a $1.4-million loss from operations on sales of $1.2 million.
Wilderness Experience filed for Chapter 11 protection last year, but emerged from bankruptcy in April. As part of its reorganization plan, the company’s bank and some of its other creditors agreed to forgive 75% of Wilderness’ debts in exchange for some of the company’s stock. The remaining 25% of Wilderness’ debt will be repaid over three years.
The company also announced that it has raised $360,000 from a private placement of units. Each unit consists of two shares of common stock and a warrant entitling the investor to purchase another share of common stock in six months at 25 cents each.
Wilderness Experience has opened six factory outlet stores during its first three quarters to try to revive sales. The company is also renegotiating with some of its landlords because it fell behind in rent payments. But the company said it has enough money on hand from its private placement to enable it to work out a repayment schedule.