NEW YORK — Chico’s FAS Inc.’s chief executive officer Marvin Gralnick and senior vice president Helene Gralnick have adopted a new plan that will allow their extant limited partnership to sell up to 2.2 million shares of their Chico’s common stock over the next 12 months.
The couple’s partnership, Rodin Ltd., has already completed the sale of 2.5 million shares through a similar plan under a Securities and Exchange Commission rule for such purposes. The number of shares reflect the 2-for-1 stock split effected by Chico’s on July 30.
“The decision to enter into this plan is not related to my views on the value of the company or its prospects,” said Gralnick in a statement. “Helene and I remain very optimistic about the future of Chico’s. Our decision to sell is simply a continuation of our long-term strategy to diversify our investments as we move towards our targeted retirement date of February 2004.”
Rodin’s shares covered by the plan represent approximately 2.6 percent of Chico’s currently outstanding common stock. Shares may include stock contributed by the Gralnicks to Rodin in the future by exercising stock options.
Under the SEC’s 10b5-1 plan, beginning Jan. 1, and for the ensuing 12 months, shares will be sold only on selected days each month, assuming the stock price exceeds a prearranged minimum price. There will also be a monthly limit on the number of shares sold of 220,000, plus any extra shares that were not sold in previous months.
The SEC rule is intended to insure the shares will be sold in a systematic manner with the goal of minimal market impact by spreading the sales out over time. Smith Barney will handle the sales.