The closures are part of the chain's strategy to improve cashflow, says Mike O'Donnell, Champps chairman and chief executiveofficer. "The closure of these three restaurants represents ourongoing commitment to improving the Company's overall real estatemix," he adds.
The store closings will cost the company between $2 million and$3 million. The company's management also expects a non-cashimpairment during the chain's third-quarter, which will be reportednext week.
During its last reported quarter, Champps' revenues fell 1.8%,to $53.2 million, while it's year-over-year same-store salesincreased 3.2%. The chain also posted a net loss of $200,000, downfrom the $500,000 it had lost during the prior quarter.
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