Merry-Go-Round's April sales off by 35%

May 06, 1994|By Jay Hancock | Jay Hancock,Sun Staff Writer

The sales slump continued for Merry-Go-Round Enterprises Inc. last month.

Revenue in Merry-Go-Round's stores that have been open for at least a year plunged by 35 percent during April. The Joppa-based fashion chain, which is in Chapter 11 bankruptcy proceedings, filed the worst results of any national retailer for the month.

Overall, Merry-Go-Round's revenue fell to $50 million during April from $63 million in the same month last year, a 21 percent drop.

The company blamed an earlier Easter this year and a continuing dearth of merchandise on its racks.

Because the Easter buying spurt came in March this year instead of April, last month's results were more depressed than they would have been, Merry-Go-Round said.

The company continues to have a shortage of apparel because suppliers refused to ship several months ago when Merry-Go-Round was having cash-flow problems, a spokesman said.

The retailer's supply lines are flowing freely again, officials say, but it will take several months before results show up in the stores.

April results "were in line with expectations," the company said.

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