Retailers, consumers and prices
Private equity firm Advent International Corp will buy the mall-based specialty apparel retailer for about $380 million and take it private, Charlotte Russe said on Monday.
Advent says it has significant experience in the retail arena with investments in companies like yogawear maker Lululemon Athletica, European discounter Takko and French designer Gerard Darel.
Any expertise on Advent’s part will only help Charlotte Russe, which like other apparel companies has faced challenges in the past months , as the recession makes shoppers more frugal.
In the fiscal third quarter, Charlotte Russe posted a 4.9 percent sales increase, but same-store sales fell 3.6 percent.
Adrenalina said on Monday that it may take steps to eject rival and athletic-clothing wear retailer Pacific Sunwear’s board, which rejected the former’s sweetened $5 a share offer to buy Pacific Sunwear.
Adrenalina, which cited a steep drop in Pacific Sunwear’s share price in withdrawing its buyout offer, said “it is unfortunate that PacSun has not embraced our attempts, both public and private, to work cooperatively and engage in constructive dialogue regarding a potential business combination.”
Check out a different weak market for retailers.
Not only are retailers having trouble selling merchandise, they are also having trouble selling themselves.
The days of the buyout boom, when the underlying value of real estate attracted buyers to retail assets is gone, analysts and bankers told Reuters.
But there could be value for some investors.
“These markets will also create opportunistic deals for people willing to dig deep, do some research and wait for a longer payout. The days of sprucing up an asset for a quick flip are over for now,” said one retail investment banker, who declined to be named.
“There’s a lot of folks looking, but not necessarily pulling the trigger,” the banker said.
Also in the basket:
Blockbuster’s Circuit City bid deemed Netflix boon
Retailers get stingy with data (N.Y. Times)
LVHM Bullish on U.S. (WWD)
Supervalu 4th-quarter profit rises, sales edge up