Delia's Dresses Up for Sale Amid Losses

Teenage girls fashion retailer Delia's (DLIA) is seeking buyers as it faces mounting losses and a drop in same-store sales. The retail store and catalog company is tapping private equity firms to gauge their interest, as well as weighing other options like raising capital, according to a New York Times report.

Delia's interest in finding a buyer comes as its net losses climbed to $22.3 million for the first nine months of last year, compared with net losses of $9.6 million for the same period a year ago. The company says it's looking to shave off $10 million in annualized expenses in fiscal 2011, which may help attract prospective buyers.

Sponsored Links
Although Delia's and other fashion retailers are facing a challenging environment amid a weak economy, the company has managed to improve its sales performance at stores opened at least a year, with same-store sales declining 0.4% in the fiscal third quarter, compared with a decline of 3.6% a year earlier. The retailer's sales performance has improved since August through at least November, according to its third quarter report.

Read Full Story

Markets

DJIA 24,423.26 34.31 0.14%
NASDAQ 7,020.52 51.27 0.74%
NIKKEI 225 21,148.02 -71.48 -0.34%
HANG SENG 25,771.67 19.29 0.07%
DAX 10,728.08 106.01 1.00%
USD (per EUR) 1.14 0.00 0.27%
JPY (per USD) 113.05 -0.13 -0.11%
GBP (per USD) 1.26 0.01 0.47%
USD (per CHF) 0.99 0.00 -0.22%