Clothestime Posts $35.9-Million Loss

Clothestime Inc. posted a $35.9-million loss and a 19% decline in sales for its fiscal fourth quarter, underscoring the struggles of the clothing chain as it entered bankruptcy.

The loss included reorganization charges of $22 million related to the closure of under-performing stores. Clothestime, based in Anaheim, has closed 153 stores since filing for bankruptcy protection in December, leaving it with 397 locations in 20 states and Puerto Rico.

The quarterly loss, $2.53 per share, more than quadrupled the $8.51-million loss, or 60 cents per share, during the comparable quarter a year earlier. Sales in the fourth quarter, which ended Jan. 27, tumbled to $67.8 million from $83.4 million.

For the full year, the company reported a loss of $43 million, or $3.03 per share, compared to a loss of $11.2 million, or 79 cents per share, in fiscal 1995. Sales fell about 10% to $308 million in fiscal 1996 from $341 million a year earlier.

Clothestime, which got its start 18 years ago in an Orange County swap meet, has been battered by competition from national retailers such as Wal-Mart and Sears Roebuck & Co. Company officials were not available for comment.