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Campeau Has $80-Million Loss in the First Quarter

From Associated Press

The Canadian parent of the Federated and Allied department store companies Friday reported a loss of $80 million for the first quarter, up sharply from a $67-million shortfall a year earlier.

The quarterly deficit for the distressed Campeau Corp. came after a huge deterioration in its financial condition last year. Toronto-based Campeau lost $1.7 billion in 1989 after losing $34 million in 1988.

Campeau said the bankruptcy filing by Federated Department Stores Inc. and Allied Stores Corp. in January impaired revenue growth.

The Cincinnati divisions, which operate such U.S. department stores as Bloomingdale’s, Burdines and Jordan Marsh, filed for protection from creditors under Chapter 11 of the federal Bankruptcy Code on Jan. 15.

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Revenue from Campeau’s department store operations was virtually flat at $1.59 billion in the three months ended April 30, compared to $1.6 billion in 1989’s first quarter.

First-quarter revenue from all of Campeau’s operations amounted to $2.26 billion, up 1.3% from the $2.23 billion of a year earlier. Other operations include real estate and Ralphs Grocery Co., a West Coast supermarket chain that is not part of the bankruptcy case.

Ralphs, which added 10 supermarkets during 1989 and remodeled 38, was the star performer in the first quarter. It had an 8.4% quarterly revenue gain to $621 million from $573 million.

Campeau’s real estate revenue shrank to $50 million in the first quarter from $59 million.

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In a separate announcement Friday, Allied said it has reached agreement with Chemical Banking Corp. on new credit arrangements. The accord will give it continued access to capital to finance operations while it is reorganizing under court supervision.


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