NEW YORK — The management of Elder-Beerman Stores Corp., led by president and chief executive officer Byron “Bud” Bergren, is negotiating exclusively to take over the company through a buyout, sources said Thursday....
NEW YORK — The management of Elder-Beerman Stores Corp., led by president and chief executive officer Byron “Bud” Bergren, is negotiating exclusively to take over the company through a buyout, sources said Thursday.
Elder-Beerman disclosed on May 16 that it had received an unsolicited offer from one party, but has never identified that party. According to sources, the management group has through early July to complete its negotiations and due diligence and arrange financing. Elder-Beerman’s board would then be required to entertain other offers.
One offer has come in so far. After first expressing its interest on May 20, EB Acquisition Ltd. on June 4 offered to acquire all shares of common stock of Elder-Beerman, at $5.50 a share, a total of about $62.7 million and a 3.8 percent premium to its $5.30 share price at the time. To satisfy shareholders, management’s offer would have to be higher.
Shares of Elder-Beerman closed up 9 cents, or 1.7 percent, at $5.39 in Nasdaq trading Thursday.
EB Acquisition said it wouldkeep the company’s headquarters in Dayton, maintain its employee base and expand in various areas in the U.S. EB Acquisition is led by Daniel S. Summers, an Ohio-based real estate investor and developer with experience developing and managing commercial and retail properties.
Financial sources said that Elder-Beerman is under no obligation to disclose the party with whom it is exclusively negotiating until the end of the exclusivity period. Bergren was traveling Thursday and could not be reached for comment.
Elder-Beerman, a regional, moderate to better priced department store chain, has been struggling for years, which could make it challenging for a buyout to be financed. However, one valuable asset is the company’s proprietary credit-card operation which could be sold off.
Bergren very much wants to hang onto Elder-Beerman, especially since he has been pushing the chain’s smaller, new concept stores, which could be the key to the company’s future. They use a single-story store format, designed specifically for smaller to mid-sized markets, including central customer service centers for faster checkouts, self-select cosmetics, a combined juniors’ and young men’s shop called The Zone, and a bridal registry kiosk. About a dozen such stores are operating.Market sources say regional chains need at least $1 billion in sales for survival. Elder-Beerman’s net sales for 2002 were $639.8 million compared with $643.1 million in 2001. Comparable-store sales decreased 2.4 percent. The chain posted a net loss of $14.2 million, including special items.
@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