Right Start Links Loss to Pending Sale of Catalogue

The Right Start Inc., a Westlake Village retailer of products for infants and young children, reported a loss of $1.92 million for the second quarter that ended Nov. 23.

The second-quarter loss was almost quadruple the $525,000 loss reported in the same quarter a year earlier. The latest loss, however, reflected a onetime charge of $1.55 million for the pending sale of the company’s Children’s Wear Digest Catalog. Second-quarter sales totaled $11.8 million, down 5% from a $12.4-million loss posted a year earlier.

For the six-month period, the company reported a loss of $1.86 million on sales of $26.3 million, compared to a year-earlier loss of $341,000 on sales of $26.9 million.

Lenny Targon, chief executive of The Right Start, said the sale of the catalogue “will generate sufficient cash to fund our continuing retail expansion, eliminating the need to seek outside financing in the short term.”

The company said it is negotiating a definitive agreement for the sale of the catalogue. The agreement could be in place by Dec. 31, The Right Start said.