By and  on September 1, 2011

Costs related to its March acquisition by TPG Capital and Leonard Green & Partners led J. Crew Group Inc. to a $10.5 million net loss in the second quarter while net, comparable and same-store sales registered gains in the period.

The company disclosed in its Form 10-Q, filed with the Securities and Exchange Commission Thursday, that it had settled a series of shareholder claims regarding the pricing of its acquisition by adding $6 million to the $10 million settlement agreed upon in January. The company said that it “or its insurers” and the two acquiring parties would make a one-time settlement payment of $16 million to be distributed on a pro-rated basis among members of the class who challenged the purchase in Delaware Chancery Court and other state and federal courts. J. Crew recorded a $10 million litigation settlement expense in last year’s fourth quarter and expensed the remaining $6 million in the second quarter.

To Read the Full Article
SUBSCRIBE NOW

Tap into our Global Network

Of Industry Leaders and Designers

load comments
blog comments powered by Disqus