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Has Wall Street Read Restoration Hardware's Latest SEC Filing?

Also, Coinstar's ripple effect on Plexus and more trampling for Feet.

From the scene of a flooded basement:

Restoration Hardware hassles:

Never mind the recent losses at

Restoration Hardware


. The company's recently filed 10-Q included interesting reading to anybody who cared to scan the


document, including several amendments. Seems the company went back to its bankers in August to revise the terms of its loan covenants. The most significant change is for the company to lose no more than $3.4 million before tax for the quarter that ends in October; that's revised up from $1.5 million.

Why the change? "Our intention was for the bank to support our working capital needs for the balance of the year," said CFO Tom Low.

Would it be fair to assume that the company went back and re-evaluated the situation and decided that it needed more wiggle room for the third quarter? He declined comment.

Whatever, the key point: Most analysts are expecting a loss of just $400,000 to $700,000 for the quarter, after tax. The covenants are pretax.

Either way, kind of a big difference, don't ya think?


Whenever one company has problems, you always have to wonder what the trickle effect will be. Take

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, for example, which makes self-service coin counting machines. The other day it warned that earnings for its third quarter would be below expectations, thanks largely to penny hoarding by retailers and consumer interest in saving the newly minted "state" quarters. (Really, that's what they said.)

Coinstar said it will continue to install new machines (at the likes of supermarkets) at a record pace. However, just in case it cuts back on buying new machines, keep an eye on



, which provides design, manufacturing and testing services to the electronics industry. Plexus, which dropped 8% yesterday after several analysts trimmed estimates, had the good fortune of recently acquiring


, which makes Coinstar's machines. Coinstar represents around 4% to 8% of Plexus revs.

Not large, but large enough to cause analysts to trim numbers.

Plexus officials didn't return my call.

Getting trampled:

Just when you didn't think the news could get any worse for

Just for Feet


, the company filed with the SEC earlier this week that it would delay its 10-Q because it's in the process of putting the final touches on a new credit facility to replace its existing one. The zinger: "Consummation of the new credit facility, which is expected within three days, will have a material impact on the discussion of the company's liquidity." No elaboration, but a material impact on the company's liquidity? Let's just say this: If they're getting more debt, that's



And this note: At a

Donaldson Lufkin & Jenrette


investor conference yesterday, the head of


, who isn't known as a loose cannon, told a roomful of analysts that he had heard that a "major vendor" has cut off Feet as a customer.

Feet officials didn't return my call.

As for the basement:

Pass the bucket. California, here we come!) And hail to Lou from



, who


return my call and will be out first thing this morning to start sopping up the water.

Herb Greenberg writes daily for In keeping with TSC's editorial policy, he doesn't own or short individual stocks, though he owns stock in He also doesn't invest in hedge funds or other private investment partnerships. He welcomes your feedback at Greenberg also writes a monthly column for Fortune.

Mark Martinez assisted with the reporting of this column.