NexCen Brands Inc, owner of the TAF and Shoebox New York retail franchise concepts, has narrowed its fourth quarter and full-year losses, but says it is “evaluating various strategic alternatives” for its current debt and capital structure.

The New York based firm, which also operates five quick service restaurant franchise concepts, posted a loss from continuing operations of $0.8m or $0.02 per share in the three months to 31 December, down from a loss of $2.1m or $0.04 per share, a year earlier.

Revenues were dragged down weak by credit markets for franchisees and softness in consumer spending and retail traffic, tumbling 17% to $10.6m from $12.6m.

Total operating expenses were slashed by 37% to $9.4m, and operating income rose to $1.1m from an operating loss of $2.4m last time.

Commenting on the results, CEO Kenneth J Hall said: “I believe that we have demonstrated that our multi-concept, vertically-integrated franchise model is sound, even in a challenging economic environment.”

But he warned the company’s current debt and capital structure “does not support the company’s long-term growth, viability and shareholder value. Addressing this issue continues to be our priority for the near future.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData

Tick here to opt out of curated industry news, reports, and event updates from Just Style.

Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

For the full year, loss from continuing operations narrowed to $3.3m or $0.06 per share, from $153.6m or $2.71 per share the year before.

Total revenues fell 4% to $45.1m from $47.0m, but operating income increased to $6.2m from an operating loss of $147.2m last time.

“We have made significant progress in our turnaround strategy,” Mr Hall said, adding: “We also remain focused on growing and enhancing our franchise business.”