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ATLANTA - Hurry Inc. (formerly known as Harry's Farmers Market Inc.) on Monday reported a net loss for the third quarter of fiscal 2002 of approximately $3.6 million, compared to a net loss of approximately $1.4 million a year ago.
In addition, the company reported that net sales decreased to approximately $29.1 million from approximately $32.4 million in the third quarter of fiscal 2001. Management believes these decreases were due primarily to a continued trend of competitive stores opening near then-existing Harry's Farmers Market and Harry's In A Hurry locations and a general economic downturn in the retail sales and grocery industry.
The company also reported a loss from operations of approximately $7.8 million, compared with approximately $0.8 million in fiscal 2001. The loss from operations includes an accrual of approximately $0.8 million for continued consulting, legal and related expenses in connection with the transaction with Whole Foods Market Group, Inc. and the company's ongoing efforts to seek strategic alternatives regarding the Harry's In a Hurry stores.
The company announced that it expects to close the Harry's In A Hurry store located in Peachtree City on or about Dec. 31, 2001. The company has previously announced the closing of its Harry's in A Hurry stores on Peachtree Road and in Dunwoody.
"I am certainly disappointed with the results of our third quarter, the need to close an additional Harry's in a Hurry store and our continuing losses at Hurry Inc. I am most disheartened with the determination that any distribution will be below the previously estimated range," stated Harry Blazer, president and CEO of the company. "It is particularly unfortunate that we have not been successful in finding solutions for the Harry's In A Hurry stores that would better maximize shareholder value. While the board continues to explore ways to do just that, it is also very mindful of the fact that a resolution must be found quickly since current operations continue to deplete cash and diminish the amount available for distribution. While we are unsure of the outcome, I, and the rest of the members of management and the board of directors, are committed to doing whatever is necessary to minimize any further erosion in shareholder value."
The company said its most prudent option is the sale or other dissolution of the its remaining assets and therefore is currently evaluating such alternatives.
Hurry, Inc. presently owns and operates four Harry's In A Hurry convenience stores in the metropolitan Atlanta, Ga. area. The stores specialize in perishable food products - fresh fruits and vegetables; fresh meats, poultry and seafoods; fresh baked goods; freshly made ready-to-eat, ready-to-heat and ready-to-cook prepared foods; and deli, cheese and dairy products. In addition, the stores feature lines of specialty, hard-to-find and gourmet nonperishable food products, floral items and a full line of wines and imported and domestic beers.