Beach Bums CEO says no bankruptcy plans

Beach Bums CEO Cliff Haddadin asked for my help the other day to spread the word that the chain is not planning to file for bankruptcy.

I asked Cliff some questions about the state of the business, and here's what he had to say. The company currently operates 11 stores.

Did you close any stores? Are you having trouble paying vendors on time? What are you doing to reassure vendors about the company's financial health?

"We closed the Mission Valley store in San Diego area, sales did not meet our lease clause that called for certain annual sales.  We are paying vendors a little slower than they'd like.

"We are managing our expenses wisely, watching corporate/store payroll, lowering our corporate expense to 30% of what we used to pay, laying off three corporate employees. These cost saving measures will enable us to weather this downturn and be there when things do turn around."

Are you able to get fresh shipments? 

"75% of our store merchandise is less than 90 days old, we are sticking to our "open to buy" business model.

"We will weather the storm by cutting cost/spending wherever is needed, investing in assortments of margin builders - whether it be our own private label or working closer with vendors to insure we hit certain margins, renegotiating leases with landlords, managing payroll."

And the obvious question - no plans to file for bankruptcy or close more stores?

"Absolutely not, we worked really hard to get where we are."