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.
Fashion retailer H&M and UK based glove and leather manufacturer Pittards both say they are monitoring the situation in Ethiopia closely after the country's government declared a state of emergency af...
Increasing competition for garment sourcing contracts is seeing China not only being challenged by other countries in Asia, but by sub-Saharan African and even Russian suppliers too. And it is pushing...
The monthly minimum wage for workers in Cambodia's textile, garment and footwear sector is set to rise to $153 from January next year, following a vote on the issue last week. The increase marks a ris...
The results of two highly-anticipated initiatives in the sportswear sphere were revealed last week: the launch of Under Armour’s new UAS lifestyle brand and the first pair of running shoes created at ...
- Fashion fit for the future – strategies for speed
- Digitisation to drive new apparel-making models
- Will new Vietnam wage hinder competitiveness?
- Under Armour Lighthouse will disrupt production
- Pakistan industry seeks help to kickstart exports
- Child refugees found in Turkey apparel factories
- Chinese manufacturer invests $20m in US facility
- Reebok Liquid Factory reinvents shoe production
- Gap to shutter all UK Banana Republic stores
- US Q3 in brief - Under Armour, VF Corp, Skechers
- Africa-Med strategic sourcing review – comparing East Africa, North Africa and Turkey
- REPORT BUNDLE: Africa-Med, Southeast Asia and Central America strategic sourcing pack
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Apparel (GLOBAL) - Industry Report
- Global Sports and Fitness Wear Market 2016-2020