NEW YORK -- Caldor Corp. sent its creditors a five-year business plan yesterday that it said will return the discount retailer to profitability.
The Norwalk, Conn.-based company said such efforts won't help the company's performance soon, though. Caldor filed for Chapter 11 bankruptcy protection in September 1995.
"While implementation of certain aspects of the plan have just begun and are showing initial positive results, they are not expected to impact the company's near-term performance," Caldor said.
The company also said it's "uncertain at this point what, if anything, a plan of reorganization may provide" to shareholders.
Shares in the nation's fourth-largest retail chain closed unchanged at $1.75.
Caldor said it hopes the plan "will restore the company to long-term profitability."
The company reported a loss from operations of $14.4 million for the five weeks ended Oct. 5 on sales of $212.3 million. Its final loss for the period was $16.3 million, or 96 cents a share, including reorganization costs of $1.92 million.
Caldor, which operates 161 stores on the East Coast, said its five-year plan "provides for significant changes in its TC merchandising, marketing and operating strategies."
The changes include revising promotions and integrating its purchasing, distribution and store operations. It also said it's starting to reduce selling, general and administrative costs.
Caldor attorney Michael Crames declined to provide details on the five-year plan beyond a statement the retailer issued yesterday.
He said the plan isn't a public document and was sent only to creditors and related parties.
The business plan is expected to be the basis for Caldor's plan of reorganization that would outline its emergence from Chapter 11.
Pub Date: 12/07/96