Lauriat's Gets New Capital as It Courts Investors
Jim Milliot -- Publishers Weekly, 5/10/1999
As it continues to try to work itself out of bankruptcy, Lauriat's Inc. has received a $25 million line of credit from Paragon Capital. The bookstore chain will use the funds to improve its inventory position, Lauriat's CEO Matt Harrison told PW.Harrison said that lack of cash kept Lauriat's inventory too low during the holidays, which had a negative impact on sales. Although, he said, Lauriat's "didn't hit our numbers" last year, he is confident that with the proper amount of stock, sales will improve.
According to Harrison, Lauriat's immediate plan to emerge from bankruptcy is to find a buyer. The company has held discussions with a number of possible investors, he noted, adding that he hoped a decision on selling the company would be resolved no later than June.
Lauriat's now has 72 outlets; the chain is in the process of changing the names of its Royal Discount and Book Corner stores to Encore Books, a move that will leave the company with only Encore and Lauriat's storefronts.
The company currently has no Web site, although Harrison indicated that it is working on a site "that will be consistent with our neighborhood store policy."
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