P.M. BRIEFING : Macy Claims $66-Million Loss

The big retailer R. H. Macy & Co. is telling its creditors that it lost $66 million in its first fiscal quarter, or nearly double what it lost in the same period a year earlier, two published reports said today.

The disclosure indicates the impact that the weakening economy and eroding consumer confidence are having on the heavily indebted retailer as it heads into the crucial Christmas shopping season.

The Wall Street Journal and the New York Times, citing a confidential memo Macy reportedly is circulating to creditors and potential investors, said the retailer lost $66 million in the three months ended Oct. 31, compared to a $33.1-million loss in the same period a year earlier.

The memo reportedly said that Macy’s sales fell 9.5% to $1.55 billion in the latest quarter from $1.71 billion a year earlier. Macy has more than $5 billion in debt from its 1986 leveraged buyout and from its 1988 acquisition of the Bullock’s and the I. Magnin retail chains in California.