The closures are part of the chain's strategy to improve cash flow, says Mike O'Donnell, Champps chairman and chief executive officer. "The closure of these three restaurants represents our ongoing commitment to improving the Company's overall real estate mix," he adds.
The store closings will cost the company between $2 million and $3 million. The company's management also expects a non-cash impairment during the chain's third-quarter, which will be reported next week.
During its last reported quarter, Champps' revenues fell 1.8%, to $53.2 million, while it's year-over-year same-store sales increased 3.2%. The chain also posted a net loss of $200,000, down from the $500,000 it had lost during the prior quarter.
The company is in the process of revamping its menu by reducing the number of items offered, among other initiatives and is scheduled for completion of the process by the end of the year. On the store opening side, management has said it expects "modest growth" this year.
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