Shares of Aéropostale Inc. jumped 18.1 percent to $10.17 on hopes that Sycamore Partners, after disclosing it took nearly an 8 percent stake in the teen retailer, would take the chain private.
Sources told WWD that Sycamore is considering Aéropostale as its next possible takeover target.
The stake was disclosed in a regulatory filing, a Form 13-D, with the Securities and Exchange Commission on Tuesday.
Securities rules require firms to disclose whenever they take a stake that is more than 5 percent and become what is then called a “beneficial owner.”
In the filing by Hummingbird LLC, which is controlled by Sycamore, the stake held by the private equity firm is nearly 6.3 million shares. The filing said the shares were acquired because of the belief that the stock is “an attractive investment.”
The company also said in the filing — using boilerplate language — that there may be discussions with the retailer’s board concerning the chain’s assets, capitalization, financial condition and future plans.
In addition, Stifel soft-lines retail analyst Richard Jaffe speculated in a research note Tuesday that Sycamore, through Hummingbird, “will attempt to take the company private.” Jaffe added that if one assumes the same multiple as The Talbots Inc.’s going-private transaction, then the hypothetical per-share acquisition price would be $10 to take Aéropostale private.
Sycamore has a history of specializing in the retail and apparel sectors. It previously had a stake in Talbots back in 2011 and then, after months of negotiation, took the retailer private in 2012 in a deal valued at $369 million. Earlier this year, Sycamore acquired teen retailer Hot Topic Inc. for $600 million.
Sycamore has been active prowling for deals. It had lengthy discussions with Australian surf brand Billabong, although that didn’t result in any transaction, and now has joined with KKR & Co. for a combined bid for The Jones Group Inc., having made a first-round offer in the summer. Second-round bids in the Jones asset sale are due at the end of the month.
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews
@prada is introducing a new project at its men’s fall 2018 show this Sunday: “Prada Invites.” The fashion house invited four celebrated creative minds – @ronanaerwanbouroullec, Konstantin Grcic, @herzogdemeuron and @rem.koolhaas – to each create a unique item with its iconic nylon material. The designs will be unveiled on the runway show, which will take place at the company’s warehouse in Viale Ortles 25. #wwdfashion #mfwm (📷: @martinocarrera)
@kering_official is spinning off its stake in puma in an effort to focus on its luxury brands, the brand operator announced yesterday. “We are proud to have supported the turnaround of Puma, which now has unrivaled capabilities to take full advantage of the specific dynamics of its global markets and is poised to achieve substantial growth,” said François-Henri Pinault, Kering’s chief executive officer and chairman. Artémis will become a “long-term strategic shareholder” of Puma with a 29 percent stake. #wwdnews #wwdfashion (📷: @jilliansollazzo)
The fashion world mourns for celebrated street style photographer, Nabile Quenum, who died at age 32 in Paris.
Quenum, creator of the fashion blog “J’ai Perdu Ma Veste,” was a fashion week fixture, and regularly shot for New York magazine’s The Cut, among other outlets, and brands such as Louis Vuitton, Moncler and Adidas. He was also actively involved in the #NoFreePhotos initiative, which kicked off in the fall. Read more about Quenum in @kbsmoke's story on WWD.com. #wwdnews
@verwanggang and @maisonladuree have teamed up on a dessert collab called Vera Wang Pour Ladurée. The collection, which launched this week, features a specialty macaroon, as well as a wedding cake inspired by one of the designer’s gowns. “I could not imagine a more delicate or sophisticated creation to grace any couple’s celebration,” said Wang. #wwdfashion