ROSWELL, Ga. -- In anticipation of continued losses in the third quarter, Harry's Farmer's Market here said it has implemented a cost-cutting program that includes streamlining its corporate staff.
Harry's in a Hurry convenience stores will remain largely unaffected by the cuts, he said. The layoffs are expected to generate savings in excess of $2 million over the next year, according to the company.
"These measures are an important first step in re-energizing the company and reducing our cost structure to return the company to profitability," said Harry Blazer, chairman and chief executive officer, in a statement. "We have returned to a flatter organization in which we will get the job done better for less."
The chain also said it was engaged in severance negotiations with Robert C. Aldworth, its chief financial officer. Blazer said the company is "evaluating alternatives for the [chief financial officer] position."
Harry's, which went public in 1993, has suffered through two years of losses and other setbacks. The company said it expects to report a loss in the range of 40 cents to 45 cents per share in the third quarter ended Nov. 1, due primarily to higher than expected losses at its Clayton County, Ga., megastore; lower sales and depressed margins at its other megastores; increased overhead expenses; and ongoing restructuring costs.
