Garden Botanika’s Losses Grow
Garden Botanika, Redmond, WA, had a net loss of $10.5 million in the first quarter of 1999, compared with a first-quarter 1998 loss of $5 million. The company’s net sales fell from $21.7 million to $17.9 million.
The quarter ended May 1, 1999.
The company attributed $5.5 million of its loss to expenses stemming from store closures and lease terminations for 95 retail outlets. Garden Botanika has been in Chapter 11 bankruptcy relief since April 20, and the store closings are part of the company’s reorganization plans.
Comparable store sales fell 12% in the first quarter, while its Garden Club loyalty program generated $786,000 in annual membership sales. The company’s combined mail order and Internet sales rose by $13,000 over first-quarter 1998, when the company did not have an Internet sales channel or a loyalty program.
