Merry-Go-Round Enterprises Inc., which has been in bankruptcy proceedings for more than a year, suffered another poor sales month in February but expects to attain its cash-flow targets for the month.
February revenue was $34.6 million -- 7 percent less than what was projected in the company's business plan. Average sales per store were 5 percent below those of February 1994, a month when Merry-Go-Round was operating hundreds of unprofitable locations that it since has closed.
Merry-Go-Round Chairman Thomas Shull blamed the February sales shortfall on January clearance promotions that he said left less apparel than planned on store shelves.
Merry-Go-Round did not compare revenue for stores operating in February with results from the same locations a year ago.
The company will be far from profitable for February. But because of cost-cutting, its bottom-line results are expected to meet projections for the first time since April 1994, Mr. Shull said.