Shells' Financial Woes Continue
Shells Seafood Restaurants on Friday reported 2007 revenues of $41.5 million, down 13.3 percent from 2006.
The Tampa, Fla., company, which operates 23 casual seafood restaurants in Florida, also posted a net loss of $4.4 million last year, compared to a net loss of $3 million the previous year. The struggling chain's same-restaurant sales declined 11.4 percent last year.
In a press release, Warren Nelson, Shells' interim president, called 2007 "a challenging year" for Florida's tourism-driven economy and casual dining overall.
"While we are disappointed with our results in 2007, we have worked diligently to reduce our expenses, while focusing on providing greater dining value for our guests," said Nelson. "Building guest traffic and sales, while holding expenses inline, are both critical to our ability to persevere through this economic downturn and reposition our brand for future long-term success."
On Feb. 29, Leslie Christon stepped down as Shells' president and CEO after four-plus years at the helm, and was replaced by Nelson, formerly executive VP and CFO. During Christon's tenure, the company lost nearly $10 million on $187 million in revenues.