Trans World Investor Ups Stake11 Mar, 2009 By: Erik Gruenwedel
Entertainment retail may be under siege by the recession, but that didn’t stop Trans World Entertainment Corp.’s single largest investor from acquiring 200,000 additional shares.
Albany, N.Y.-based Trans World operates the 750 f.y.e. (For Your Entertainment) locations, Second Spin used-content stores and related Web sites.
Lloyd Miller, who reportedly owns 5.6 million shares, or 18% of Trans World’s stock, bought 200,000 shares for 62 cents each, or $124,000, according to a March 6 regulatory filing.
Unlike renowned investor Carl Icahn, whose strategy of acquiring stock in undervalued companies often includes grabbing board seats and jettisoning the CEO, Miller said his purchase was for investment purposes only and not meant as a shot across the bow to rattle management.
Trans World’s fourth-quarter sales fell to $344.7 million, compared to $451.5 million last year. Comparable-store sales for the quarter decreased 14%. However, it did post a net loss of just $9.4 million, compared to a loss of $66 million during the previous-year period. Same-store DVD sales declined just 3% for the fiscal year due in large part to double-digit growth of Blu-ray.