Blog: Bauer bid rejected
Leonie Barrie | 9 February 2007
The decision by Eddie Bauer shareholders to reject a $280m sale of the company to a pair of buyout firms is a surprising one. After all, the deal on the table to take the troubled outdoor apparel company private offered US$9.25 a share, plus the assumption of about $328m in debt.
Management now have the unenviable task of continuing to operate Eddie Bauer on a standalone basis, and deciding whether to take on more debt or refinance existing debt on unfavourable terms. They’ll also have to stump up another $5m to cover the expenses of failed bidders Sun Capital Partners and Golden Gate Capital. And then there’s the small matter of performance to think about: net merchandise sales have declined since 2000, and same-store sales have fallen in 23 of the previous 27 quarters. In 2006, sales slid by 4.5%, with net merchandise sales dropping 4.5% to US$957m.
Against this background, surely a sale would have been a preferable option? Maybe shareholders still have faith in the brand and a management team that has so far failed to execute a turnaround. Or maybe the knowledge that president and CEO Fabian Mansson stood to pocket around $10.8m in stock payments and other benefits was enough to sway the vote against the new buyers.
Some of just-style’s more eagle-eyed readers might have noticed a small change to the menu bar on the homepage: the addition of the word re:source. Yes it might be a small change – but it marks the co...
Over the past week just-style has continued to try to unravel the potential ramifications of Donald Trump’s election as the next president of the United States....
One event dominated the international airwaves last week, and on just-style too we took a closer look at the surprise election of Donald Trump as the 45th president of the United States....
As the Brexit roller-coaster continues to twist and turn, and the US presidential election campaign nears its unpredictable and possibly protectionist end, there's no doubt these events – and the perc...
- Why do modern robotics elude sportswear makers?
- Traditional financing is a misfit for fast fashion
- Bagir CEO says suit-maker is back on track
- Mexico makers bullish on Trump's proposed tariffs
- How would end of NAFTA affect US apparel industry?
- Bagir exports first trousers for H&M from Ethiopia
- US Q3 in brief - G-III Apparel, Express
- Fruit of the Loom CEO Medlin dies suddenly
- Crystal expands empowerment project to male staff
- Film documents Cambodia garment workers' stories
- Outdoor performance apparel 2016: A broader perspective
- Global market review of lingerie – forecasts to 2022
- Global apparel markets: product developments and innovations, October 2016
- Footwear Top 5 Emerging Markets Industry Guide_2016
- REPORT BUNDLE: Africa-Med, Southeast Asia and Central America strategic sourcing pack