House of Fabrics Inc., the Sherman Oaks-based chain of retail fabric stores, reported a loss of $25 million for its fiscal third quarter, compared with a profit of $758,000 a year earlier, largely because of a $35-million pretax charge for restructuring.
For the quarter ended Oct. 31, sales were down 3% to $141.8 million from $146.8 million a year earlier. But in the latest quarter, House of Fabrics said it was taking a charge of $13 million to close down 105 mall stores at the end of their leases. In addition, the company said it was taking a $22-million charge to set up reserves to restructure, reprice and mark down inventory to be more competitive.
For the nine months ended Oct. 31, the company’s loss totaled $29.8 million, contrasted with a profit of $2.99 million for the same period a year earlier. Revenue for the nine months was unchanged from a year earlier, at $399 million.