NeoStar Hires Bush; Posts A 1st Qtr. Loss

NeoStar, the computer and game entertainment software retailing specialist, reported a significantly higher than expected first quarter loss and announced it has hired former Tandy executive Alan Bush to head its restructured and consolidated its three businesses. Bush, who left the post of president at Tandy's Computer City chain last February, has joined NeoStar as executive VP responsible for all retailing operations. He assumes the former responsibilities of Mary Evans, former VP for Babbage's stores; Stanley Hirschman, former VP, Software Etc. and David Uhlman, former leased operations VP. Evans will continue in a regional post. Uhlman and Hirschman are resigning, along with Daniel DeMatteo, who is stepping down as president but continuing as a director. Chairman-CEO James McCurry is adding the post of president.

Bush will be in charge of NeoStar's 839 retail stores as well as the leased departments NeoStar operates in Barnes & Noble book stores. For the quarter to May 4, NeoStar had a loss of $8.32 million, against a year-earlier deficit of $3.59 million, on essentially flat sales of $97.8 million. Same-store sales were down 9%. NeoStar said it expects to take a $2.6 million second quarter charge for expenses related to its restructuring.