Dillard’s Seeks to Reassure Investors on Debt
Little Rock, Ark. Dillard's Inc. on Friday offered more details about its financial position in an effort to reassure investors.
In its statement, the company said has a $1.2 billion credit line with JPMorgan Chase Bank as the lead agent. At the peak of demand in late November, the company said it should still have more than $500 million available.
Dillard's also said that after it pays $100 million in debt which comes due on Nov. 15, long-term loans that will be due over the next two years total less than $26 million.
Also, it said the closure of 20 stores so far this year reduces its working capital needs by more than $50 million. It has also lowered the number of planned new stores to be opened in 2009, so capital expenditures next year have been slashed to $120 million from $204 million in fiscal 2008.
Dillard's also said it expects to save $50 million in general operating costs in fiscal 2008.