Entertainment retailer Trans World Entertainment, which operates 963 stores under the F.Y.E. and Suncoast banners, reported a bigger than expected third quarter loss of $14.3 million compared with a loss of $11.4 million last year.  Analysts were expecting Trans World's 3Q losses would be almost the same as last year's. 

Sales were down 12%, a figure that was a little misleading since the number of stores in the chain declined by 13% as Trans World shed some of its worst performing outlets.  The more relevant figure was the 4% decline in same store sales.  While sales of DVDs, electronics and boutique items held their own, once again it was CD sales that brought the chain's figures down.

Meanwhile Trans World CEO Robert Higgins, who took the company public twenty years ago, received backing from the company's board of directors for his plan to take the company private by buying back outstanding shares for $5 (see 'Trans World Buy Back?').  Although some Trans World investors are not happy with Higgins' offer (Trans World stock is currently trading at $5), the major roadblock to the deal at this time appears to be arranging to finance the buy-back in the current capital market.