MILAN, Ill. -- Eagle Food Centers here said higher expense levels caused reduced operating margins, resulting in a $4.5 million net loss for the first quarter ended April 29.
That compared to a $361,000 net loss the previous year, which included $1.1 million of non-recurring expenses, primarily due to start-up costs of its targeted marketing program.
Net sales for the quarter decreased 1.8% to $245.5 million from $250.1 million. Same-store sales dropped 0.8% for the quarter.
The company said it has signed a commitment letter with Congress Financial Corp., Chicago, for a new $40 million revolving credit facility.
"Effectively, we're moving from a $32 million credit facility to a $40 million facility," said Herbert Dotterer, senior vice president and chief financial officer. "It will replace the existing facility and get us a higher line of credit for the same amount of collateral with less restriction."
In the months ahead, the company will focus on improvements in individual markets, Dotterer told SN.