Indianapolis-based Paul Harris Stores Inc. announced it expects to take a second-quarter loss of more than 50 cents a share, citing extensive discounting and poor sales. The public notice drove the company's stock down 40 percent.
The company also announced it would sell its recently acquired J. Peterman, purchased last year for $10 million at a bankruptcy auction. J. Peterman has not only struggled with its catalog operation in recent times, but also with its attempt at standalone retail – the company's Grand Central Station store in New York lasted only about six months.
According to Paul Harris ceo Glenn S. Lyon, J. Peterman has potential for growth, given its on-going connection to TV's Seinfeld re-runs, but not with Paul Harris. The two simply didn't match. Lyon plans to focus on Paul Harris'315 stores, and on repairing its strained budgets – some stores have fallen behind in rent — from now on.