Loss Widens for Consolidated Stores

Consolidated Stores Corp., the No. 1 retailer of outdated or excess merchandise and owner of the KB Toys chain, said its loss widened in its fiscal first quarter on spending for its KBkids.com Internet site. The company said it expects earnings for the full year to exceed analyst estimates, however. The loss in the latest quarter grew to $13.2 million, or 12 cents a share, from $3.7 million, or 3 cents, a year ago, although it wasn’t as deep as the 15-cent loss analysts expected. Revenue rose 8.7% to $1 billion. Consolidated also said it fired Srikant Srinivasan, chief executive of the KBkids.com unit, as well as 50 of the unit’s other 150 employees. The company is revising an operating plan for the Internet business and said it may be several weeks before it decides on an approach to hiring a new CEO. The Internet business lost 7 cents a share in the quarter. The retailer said it is continuing to review a reorganization plan prepared by investment bank Credit Suisse First Boston and expects to release information on the review in about a month. Credit Suisse was hired two months ago to explore alternatives, including a business sale or combination, a change in its capital structure and a stock buyback. Consolidated closed off 38 cents at $11.94 on the NYSE.