[ PW Home ] [ Bestsellers ] [ Subscribe ] [ Search ]

Publishers Weekly News

Poor Second Quarter Prompts Changes at Crown Books
Jim Milliot -- 9/22/97
Company gets new chief operating officer; Wallace's ends discussions with Dart
A disappointing second quarter in which Crown Books lost $4.2 million in the period ended Aug. 2, 1997 compared to a loss of $1.5 million in last year's second period has prompted parent company Dart Group to initiate a number of changes. In addition, Dart announced that Wallace's Bookstores has ended its discussions about possibly buying Dart's 52% stake in Crown.

With comparable-store comparisons down for every one of Crown's different type of outlets (off 8% for all stores; 8.6% for all superstores; and, most disappointingly of all, 8.2% for the new prototype superstores), Larry Schafran, chairman of the executive committee for Crown, said, "We are currently taking steps which we believe will have a positive impact on our future performance."

Among the changes announced was the appointment of Mark Flint as Crown's interim chief operating officer, a new position. Flint also serves as a Dart senior v-p and chief financial officer. According to Dart, Flint, along with the members of Crown’s executive committee, will become more involved with the chain's day-to-day operations. Steve Stevens, who was on vacation last week, continues as Crown president.

Schafran also said that Dart’s plans to reposition Crown include the implementation of a "significant cost reduction program," the refinement of its new-store prototypes and continued investment in training programs. Schafran told PW that the details of the restruction program are still being developed, but that the initial plans do not call for accelerating store closings and that the company will move ahead with new stores in Dallas and Philadelphia.

Earlier this year, Crown reported a 0.7% increase in sales to $67 million in the second quarter, with sales for the six month period up 3.5% to $133.5 million.
Back To News
--->
Search | Bestsellers | News | Features | Children's Books | Bookselling
Interview | Industry Update | International | Classifieds | Authors On the Highway
About PW | Subscribe
Copyright 2000. Publishers Weekly. All rights reserved.