Merger Costs, Pension Withdrawal Widen Pathmark Loss

CARTERET, N.J. — Merger-related costs and expenses associated with withdrawal from a multi-employer pension fund widened the quarterly loss for Pathmark Stores to $18.8 million in its fiscal second quarter ended Aug. 4, the retailer here said yesterday. Pathmark reported a net loss of $8.8 million in the same period a year ago. Sales for the 13-week quarter decreased by 0.4% to $999 million, and same-store sales fell by 0.2%, Pathmark said. The loss included charges of $7.2 million related to the pending merger with A&P, $7 million related to the pension withdrawal and a $2.2 million impairment charge. These expenses were slightly offset by a gain of $5.5 million on the sale of real estate and by improved EBITDA, which increased by $3.4 million to $29.6 million for the quarter due to better in-store merchandising and expense control, Pathmark said.

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