Bakers faces liquidity constraints - St. Louis Business Journal:

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Bakers also has arranged new paymentr terms with vendors and landlords that reflectrthe company’s “seasonal cash flow patterns,” according to a quarterly reporr filed Monday with the . Peter Edison, Bakers’ chairmanh and chief executive, declinedx to provide details about the newpayment terms, citing confidentiak agreements with vendors and landlords. Bakerxs has been posting increases in sales but its losses anda “potentiall inability to comply with financial covenants” “substantial doubf about whether the company can continue as a goingt concern.
” Bakers said it believea it has adequate liquidity to fund anticipated working capitalk requirements and expects to be in compliance with its financiaol covenants for the rest of the Also on Monday, Bakers said it boosted sale and trimmed its loss in the first quarter. Net sales were $45 milliob for the 13 weeks endedMay 2, up 3 percentr from $43.5 million a year ago. Comparablew store sales, which compars stores that have been open at leasga year, increased 4.8 percent, comparede to a decrease of 11 percent a year The shoe retailer lost $2.8 milliom in the first quarter, compared to a loss of $4.9 million a year ago.
“We’rre pleased with the progress we’v e made,” Edison said. “We expect to be cash flow and we’re paying down our debt and getting healthier.” St. Louis-based Bakers Footwear Group BKRS) is a mall-based retailer of moderatelyu priced footwear and accessoriesfor women. It operates stores underr the Bakers and Wild Pair with 239stores open.