Meade Instruments Announces $700,000 Charge

Telescope and binocular maker Meade Instruments Corp. said it will take a fourth-quarter charge of about $700,000 stemming from the bankruptcy of Service Merchandise Co., one of its largest customers.

Irvine-based Meade said it still will show a fourth-quarter profit when it reports fourth-quarter and year-end financial results April 22.

Service Merchandise accounted for slightly less than 10% of Meade’s total sales in 1998, down from about 14% the previous year.

“It is always a concern when an important customer files for bankruptcy, and we are closely monitoring the reorganization efforts of Service Merchandise,” Meade Chief Executive John C. Diebel said in a statement. Meade officials remain optimistic that the current fiscal year will be “another record year” for Meade, he said.

Service Merchandise said last month that five vendors forced the retailer into a court-supervised Chapter 11 bankruptcy reorganization.