Ending threats of a proxy battle, Pacific Sunwear of California Inc. said Friday Adrenalina Inc. had withdrawn its nominees for election to PacSun’s board.
The bitter David-and-Goliath dispute began last October when PacSun, with 932 stores, rejected the bid by Adrenalina, which has four stores, to buy the teen retailer — first for about $300 million and later for about $329 million.
The conflict intensified in February after Adrenalina chairman and chief executive officer Ilia Lekach named four candidates, including a professional poker player and gaming expert, to stand for election to the PacSun board. Lekach also demanded the resignation of PacSun ceo Sally Frame Kasaks, saying her leadership “threatened to destroy shareholder value” and imperiled the existence of the Anaheim, Calif.-based teen retailer.
PacSun’s board backed Kasaks and her efforts to turn around the company, warning Lekach in a letter that it would do “all that is necessary to protect shareholders.”
PacSun’s sales last year totaled $1.25 billion, and Adrenalina’s nine-month total was $3.7 million.
Lekach’s recent change of heart came after he met with several of PacSun’s directors.
“What changed was that I met with the independent board members, and they showed me what they were doing,” Lekach told WWD. “They chose a direction.”
Lekach said he would be “interfering” in PacSun’s plans if he pursued the proxy battle, but added the threat of a confrontation “could have been avoided” if the retailer granted him a meeting earlier.
“But it’s always in hindsight,” he said. “All’s well that ends well.”
PacSun’s lead independent director Peter Starrett agreed.
“We appreciated the opportunity to have an open and frank discussion with Mr. Lekach, and to hear his ideas and suggestions,” he said. “We are pleased that Adrenalina has determined not to pursue a proxy contest so that the company can devote all of its resources and attention to the important task of operating its business.”
PacSun shares fell 2 cents to $1.67 on Friday, and Adrenalina stock gained 7 cents, to close at 15 cents.
London’s newly opened @designmuseum will look back on the life and work of Azzedine Alaïa in a show that the designer helped to curate before he died of heart failure last month. The retrospective, which Alaïa had worked on with Mark Wilson, chief curator of the @groningermuseum, will look at the impact of his work worldwide. The show, “Azzedine Alaïa: The Couturier,” will run from May 10 to October 7. Read more about the exhibit on WWD.com #wwdnews #wwdfashion (📷: @zefashioninsider)
@Pharrell and his wife Helen Lasichanh were among the stars that came out to celebrate @rimowa’s first pop-up concept shop. The space, which is located on Rodeo Drive in Beverly Hills, draws inspiration from airport luggage carousels and lounge areas – and features the company’s luggage and accessories. If the pop-up is successful it could pave the way for addition temporary shops throughout the world. #wwdfashion (📷: Owen Kolasinski/BFA)
@carineroitfeld celebrated @crfashionbook’s first calendar last night with a dinner party at Spring Place in Manhattan. Photographed by @stevenkleinstudio, the calendar takes on a fitness theme and features @joansmalls, @gigihadid, @danielle_herrington_ – pictured here – and more. “[Carine Roitfeld] wanted me to feel sexy and she wanted me to be myself and feel it out on my own and do what I felt was right,” said Herrington, aka Miss October. #wwdeye
@saintrecords and @virgilabloh last night at @americanexpress’ “A Night With Success Makers” event. “I always bring it back to community because without that I wouldn’t have the courage,” said Knowles when asked how she has gotten where she is now. Read more highlights from their conversation on WWD.com. #wwdeye (📷: @lizdoupnik)
This Just In: Industry sources have told WWD that Anastasia Soare is rumored to be considering selling her beauty business, @anastasiabeverlyhills. According to those sources, Soare has tapped investment bank Imperial Capital to explore sale options for her eponymous beauty brand –– and with at least $340 million in net sales, this would be a big deal. Put in context of other recent transactions for makeup companies, Soare’s price tag could be in the billions if she were to sell the whole thing. #wwdnews #wwdbeauty (📷: @clint_spaulding)
@assouline’s latest book, “The Spirit of Bentley: Be Extraordinary” captures the adventurous attitudes and opulent lifestyles of @bentleymotors’ most creative owners and enthusiasts throughout the U.K. The 292-page hardcover has a section dedicated to showing its team of skilled artisans and photos of its most colorful owners, from George Bamford to designer @alicetemperley, pictured here by Aline Coquelle. #wwdeye
@google released its report on the most popular search terms this year. For fashion brands, the list was led by @gucci, the luxury brand that stunned the market last October when it pledged to stop using fur. Runner ups were @supremenewyork and @fashionnova, along with more established brands like @louisvuitton, @chanelofficial and @ysl. #wwdfashion (📷: @aitorrosasphoto)
In yet another fashion show shuffle, @elleryland is moving its show in sync with the Paris couture calendar — though the brand is still keeping one foot on the city’s ready-to-wear schedule. Their runway show in January will coincide with the launch of a new strategy: designing two main collections each year instead of four, which will then be released in four drops. “As we all know, the system needs to change. We need to show sooner to give time back to artisans and designers to do what they do best — create,” said founder Kym Ellery. #wwdnews #wwdfashion (📷: @kukukuba)
@maxmara’s classic 101801 coat was the cornerstone of its pre-fall 2018 collection. The design team expanded the traditional double-breasted, kimono-sleeved style into a trapeze coat, lean belted styles and a peacoat and presented them in monochromatic looks – like the camel one pictured here. #wwdfashion #prefall18 (📷: George Chinsee)