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Broadway Loss Nearly Triples in 2nd Quarter

From Times Wire Services

Broadway Stores Inc. said Tuesday that its loss nearly tripled in its fiscal second quarter as sales languished.

The Los Angeles-based department store chain, which last week agreed to be acquired by Federated Department Stores Inc., said its loss widened to $37.4 million, or 80 cents a share, from a loss of $12.9 million, or 28 cents, in the same quarter last year.

Revenue for the period ended July 29 rose 0.8% to $460.6 million from $457.0 million. Same-store sales, or sales at stores open at least a year, declined 1.2%.

Broadway operates 82 stores under the names The Broadway, Emporium and Weinstocks.

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Federated has said it plans to invest about $525 million in the next three years to convert and remodel Broadway’s stores.

Many of Broadway’s suppliers had stopped shipping to the debt-laden chain, forcing the company’s management to consider filing for Chapter 11 bankruptcy protection before Federated made its offer.


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