December 18, 2019
Trans World Entertainment, parent to mall-based home entertainment retailer f.y.e. (For Your Entertainment), Dec. 18 disclosed it would delay the release of its third-quarter 10-Q regulatory filing to Dec. 23.
The company, which did not submit the filing with its Dec. 17 fiscal release, said it needed additional time to compile required financial data to its accountant (KPMG).
Specifically, TWEC said its primary sources of liquidity include borrowing under its revolving credit facility, tapping available cash and cash equivalents, and cash generated from operations.
Yet f.y.e. reported an operating loss of $21.5 million, with revenue down 14.7% to $40.8 million. Comparable store sales declined 5.2% — the decline largely buttressed by gains in collectables revenue. And eTailz.com, the ecommerce middleman acquired in 2016 for $75 million, lost $1.4 million.
TWEC, in the filing, said the results “raises substantial doubt” about its ability to continue as a going concern for 12-month period following the Q3 fiscal period.
The operator of more than 200 f.y.e. stores, said it hopes to improve profitability, implement a performance improvement plan for eTailz and secure additional funding, among other strategic alternatives.