SBD/22/Finance

Print All
  • JUMBOSPORTS ANNOUNCES STORE CLOSINGS AND RESTRUCTURING

              JumboSports Inc. announced that it will "continue to
         slim down, closing 18 of its 77 stores" and taking a $35-
         $45M "restructuring charge," according to Aissatou Sidime of
         the TAMPA TRIBUNE.  The moves, part of a '98 strategy to
         "run a leaner company, eliminate inventory problems and pay
         down debt," will result in 740 lost jobs.  In addition, the
         chain will "shrink" to 59 stores in 23 states by summer. 
         The latest round of closures follow the October closings of
         eight stores, and withdraws the company from 15 "large to
         mid-sized markets," mainly in the Midwest.  The "deciding
         factor" in the restructuring was the company's desire to
         reduce its debt, which totaled $360M on October 31.  With
         the closings, JumboSports "expects to recover" $70M and
         "apply those funds" to the debt (TAMPA TRIBUNE, 1/22).
    
    

    Print | Tags: Finance
Video Powered By - Castfire CMS Powered By - Sitecore

Report a Bug