Eddie Bauer Holding Inc. said an insufficient number of shares was voted in favor of the proposed sale of the company at $9.25 per share in cash to Eddie B Holding Corp, which is owned by affiliates of Sun Capital Partners Inc. and Golden Gate Capital.
NEW YORK — Eddie Bauer Holding Inc. said an insufficient number of shares was voted in favor of the proposed sale of the company at $9.25 per share in cash to Eddie B Holding Corp, which is owned by affiliates of Sun Capital Partners Inc. and Golden Gate Capital.
A special shareholders meeting on the planned sale was held Thursday.
Eddie Bauer said in a statement, "As a result of this vote by stockholders, Eddie Bauer will continue to operate as a standalone publicly traded entity. The Eddie Bauer board of directors will be evaluating appropriate next steps for the company."
Shares of Bauer closed at $8.79 Thursday, down 4.3 percent in over-the-counter trading. The stock was trading between $8.65 and $9.20 throughout November, when the company first announced its deal with the two private equity buyers. Shares have lost ground over the last few months due to a decline in third-quarter profits and the disclosure of tax accounting errors, which in turn pushed back the shareholder meeting on a vote on the proposed sale. Bauer hired Goldman Sachs in May to explore a sale of the company. The $9.25 per share cash offer represented just a 5.2 percent premium over the stock's closing price on Thursday.
A financial source said institutional investors were against the sale.
Bauer sells its product through 390 stores across the U.S. and Canada, as well as catalogue and Web site operations.
A Stella McCartney sketch of a custom dress made from protein-based silk in partnership with biotech lab Bolt Threads. The dress will be displayed at The Museum of Modern Art's upcoming design exhibition, "Items: Is Fashion Modern?"