The Spiegel Group reported sales of $135.8 million for the four weeks ended Jan. 25, off 16% from $162.6 million last year.
Total Spiegel Direct sales decreased 26% over last year. Management attributed this to a planned reduction in catalog circulation and lower customer response.
The Downers Grove, IL firm’s total retail sales fell 3% compared to last year due to a reduction in the number of stores and lower sales in its outlet stores.
On Wednesday, the firm announced that its chief financial officer James R. Cannataro had resigned. The company also revealed that it was being investigated by the Securities and Exchange Commission for its late filing of its fiscal 2001 and quarterly 2002 financial reports.
In addition, Spiegel’s auditor, KPMG LLP, warned Spiegel’s board that the retail/catalog firm was not in compliance with some debt agreements, and that there were doubts about the company’s ability to continue.
Spiegel also announced this week that it was laying off 300 call-center employees.
Spiegel’s belated 2001 annual report, which was filed Tuesday, reported a $188.9 million net loss from its retail and private credit card businesses.
Network
