Jennifer Convertibles Inc (JEN, Financial) filed Amended Annual Report for the period ended 2009-08-29.
Jennifer Convertibles is the owner and licensor of the largest group of sofabed specialty retail stores in the United States, with stores located throughout the Eastern seaboard, in the Midwest, on the West Coast and in the Southwest. The company's stores specialize in the sale of a complete line of sofa beds and companion pieces such as loveseats, chairs and recliners. Jennifer Convertibles Inc has a market cap of $7.8 million; its shares were traded at around $1.11 with and P/S ratio of 0.1.
On July 11, 2005, we entered into a Credit Agreement, as amended (the Credit Agreement) and a Security Agreement with Caye. Under the amended Credit Agreement, Caye agreed to make available to us a credit facility of up to $13,500,000, effectively extending Cayes payment terms for merchandise shipped to us from 75 days to 105 days after receipt of goods. On July 10, 2009, we entered into a letter agreement with Caye pursuant to which we agreed to pay down our debt to Caye by approximately $400,000 in exchange for Caye releasing their security interest in all of our assets and terminating all obligations under the Credit Agreement. In exchange for this release, Caye has provided us with approximately $500,000 of trade credit in place of the credit facility of $13,500,000. See Managements Discussion and Analysis of Financial Condition and Results of Operations for a more detailed description of these transactions.
In December 1997, Klaussner purchased $5,000,000 of our convertible preferred stock. During May 2006, Klaussner voluntarily converted 3,510 shares of Series A Preferred Stock into 500,000 shares of the Companys common stock. The remaining 6,490 shares of Series A Preferred Stock are convertible into 924,500 shares of the Companys common stock. In fiscal 2009, Klaussner gave us certain vendor credits for repairs. See Certain Relationships and Related Transactions in our Proxy Statement to be furnished in connection with our Annual Meeting of Stockholders to be held February 9, 2010, which is hereby incorporated by reference and Managements Discussion and Analysis of Financial Condition and Results of Operations for a more detailed description of these transactions, Klaussners $5,000,000 investment and other transactions with Klaussner.
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Jennifer Convertibles is the owner and licensor of the largest group of sofabed specialty retail stores in the United States, with stores located throughout the Eastern seaboard, in the Midwest, on the West Coast and in the Southwest. The company's stores specialize in the sale of a complete line of sofa beds and companion pieces such as loveseats, chairs and recliners. Jennifer Convertibles Inc has a market cap of $7.8 million; its shares were traded at around $1.11 with and P/S ratio of 0.1.
Highlight of Business Operations:
We believe that the image presented by our stores is an important factor in our overall marketing strategy. Accordingly, stores are designed to display our merchandise in an attractive setting designed to show the merchandise, as it would appear in a customers home. All of our stores have a similar clearly defined style, are designed as showrooms for the merchandise and are carpeted, well lit and well maintained. Inventories for delivery are maintained in separate warehouses. We display a variety of sofabeds, sofas and companion pieces at each Jennifer Convertibles and Jennifer Leather retail location with tables and lamps. In contrast to certain of our competitors that primarily target particular segments of the market, we attempt to attract customers covering the broadest socio-economic range of the market and, accordingly, offer a complete line of sofabeds and sofas made by a number of manufacturers in a variety of styles at prices currently ranging from approximately $299 to $2,200.On July 11, 2005, we entered into a Credit Agreement, as amended (the Credit Agreement) and a Security Agreement with Caye. Under the amended Credit Agreement, Caye agreed to make available to us a credit facility of up to $13,500,000, effectively extending Cayes payment terms for merchandise shipped to us from 75 days to 105 days after receipt of goods. On July 10, 2009, we entered into a letter agreement with Caye pursuant to which we agreed to pay down our debt to Caye by approximately $400,000 in exchange for Caye releasing their security interest in all of our assets and terminating all obligations under the Credit Agreement. In exchange for this release, Caye has provided us with approximately $500,000 of trade credit in place of the credit facility of $13,500,000. See Managements Discussion and Analysis of Financial Condition and Results of Operations for a more detailed description of these transactions.
In December 1997, Klaussner purchased $5,000,000 of our convertible preferred stock. During May 2006, Klaussner voluntarily converted 3,510 shares of Series A Preferred Stock into 500,000 shares of the Companys common stock. The remaining 6,490 shares of Series A Preferred Stock are convertible into 924,500 shares of the Companys common stock. In fiscal 2009, Klaussner gave us certain vendor credits for repairs. See Certain Relationships and Related Transactions in our Proxy Statement to be furnished in connection with our Annual Meeting of Stockholders to be held February 9, 2010, which is hereby incorporated by reference and Managements Discussion and Analysis of Financial Condition and Results of Operations for a more detailed description of these transactions, Klaussners $5,000,000 investment and other transactions with Klaussner.
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