TARRANT FOUNDERS BUY COMPANY: Tarrant Apparel Group, a Los Angeles-based private label manufacturer, said it agreed to sell its outstanding publicly held shares to its founders, Gerard Guez and Todd Kay, for $15.2 million. The purchase is conducted as a merger with Sunrise Merger Co., which will sell the outstanding shares not already owned by Guez and Kay to Sunrise Acquisition Co. Guez, who serves as Tarrant’s chairman and interim chief executive officer, and Kay, who is Tarrant’s vice chairman, both are members and managers of Sunrise Acquisition. Sunrise Acquisition will pay 85 cents a share in cash, representing a 130 percent premium over Tarrant’s closing price Thursday on the Nasdaq.
This story first appeared in the February 27, 2009 issue of WWD. Subscribe Today.
JAPAN RETAIL NEWS: A major department store in Osaka, Japan, is changing hands. Seven & I Holdings Co. Ltd. said Thursday it has agreed to sell its Sogo flagship on the bustling Shinsaibashi strip to Daimaru Inc. for 37.91 billion yen, or $391.10 million. The move will greatly enhance Daimaru’s presence in Osaka. Daimaru, a subsidiary of J. Front Retailing Co. Ltd., already has its own store next door to Sogo and hopes to cut costs by running the stores integrally, the company said. The Sogo property will be handed over at the end of September while a reopening date is tentatively set for November.