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.
@tradesy is turning the concept of a showroom upside down with its new space in Santa Monica. Here, the company plans to hold events, art exhibits and a showcase rare fashion pieces like this Louis Vuitton boxing set. Get all the details on Tradesy’s first showroom on WWD.com. #wwdnews
Spotted last night at the @erdem x @hm launch event: Kate Bosworth, Rashida Jones, Kirsten Dunst and Selma Blair. The party, which took place in LA, also marked the opening of their pop-up shop. “I was interested in creating a collection that wasn’t in any way disposable. It was about pieces you’d create and keep forever, things that have a permanence to it,” designer Erdem Moralioglu said. #wwdeye (📷: Katie Jones)
Renee Zellweger in yellow in 2001 and again in 2017. Chosen as one of the 12 @pantone Leading Spring Colors (and dubbed “Meadowlark”), it only makes sense that the bright hue stands the test of time and is making a resurgence this season, seen already on stars like @blakelively and @gigihadid. (📷: Donato Sardello & @rexfeatures) #wwdfashion #tbt
Dior’s 70th anniversary celebration continues with a new exhibition at the Royal Ontario Museum in Toronto. “Christian Dior,” which is scheduled to run through March 18, takes a look at the founders tenure from 1947 to 1057 and feature 40 designs. Pictured here is an evening gown from the Ailée, fall 1948-49 haute couture collection. #wwdfashion (📷: Brian Boyle)
As one of the most recognizable models in the world, Christy Turlington Burns has an insider’s view of the fashion industry and the allegations of sexual harassment swirling around it. “I can say that harassment and mistreatment have always been widely known and tolerated in the industry. The industry is surrounded by predators who thrive on the constant rejection and loneliness so many of us have experiences at some point in our careers,” Turlington told WWD, along with her suggestions for how the modeling world should protect younger women and men. Read more on WWD.com. Link in bio. (📷: Tony Palmieri) #wwdnews
@asics America has tapped a new brand ambassador: famed DJ/record producer @steveaoki. This initiative is intended to set the tone for the new brand identity and philosophy and will include partnerships with influencers and in-store and off-line activations that will continue into next year. This is Asics’ most significant marketing effort in two decades, and is expected to attract younger consumers to the brand. #wwdfashion
24-year-old Jean Prounis is redefining the rules of jewelry. Formerly a studio assistant to Jemima Kirke and a design apprentice at Ghuran, she focuses on handcrafted subtleties and ancient goldsmithing techniques. “There was a really sterile feel in the environment and I wanted to have jewelry with character that shapes how you wear it everyday,” Prounis said. Each piece is hand made in New York, either by Prounis or three other jewelers in the district. #wwdfashion
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews