DEAL COMPLETE: Christopher & Banks Corp. said Monday after the stock market closed that it has completed the acquisition of 21 Acorn stores from Gilmore Brothers Inc. for $7 million in cash. The Acorn stores, located in nine states, sell women’s apparel, jewelry and accessories under private and branded labels. “Acorn provides us a differentiated yet complementary retail concept, which will enhance our strategic growth plans by allowing us to reach a more upscale customer demographic,” said Bill Prange, chief executive officer of Christopher & Banks, in a statement. The company first said it signed a definitive agreement to acquire Acorn on Sept. 28. At that time, management anticipated the acquisition would add $3.5 million in revenues in the fourth quarter and be dilutive to fourth-quarter earnings by 1 cent a share. Minneapolis-based Christopher & Banks currently operates 463 Christopher & Banks and 150 C.J. Banks women’s specialty stores.
THREADGILL JOINS TROPICAL: Ronald Threadgill has joined Tropical Sportswear International as senior vice president of global logistics, with responsibility for planning, purchasing and sourcing. He takes over many of the duties previously handled by Frank Maccarrone, who left Tropical as executive vice president and chief operating officer last month. Threadgill comes to Tropical from Levi Strauss & Co., where his last post was director of sourcing for the launch of Levi Strauss Signature and director of manufacturing operations for Levi’s operations in the Western Hemisphere.
WELLMAN’S POLY PRICING: Wellman Inc. plans to raise by 6 cents the price of a pound of its polyester staple fiber products — used in apparel, home furnishings and other goods — by Jan. 2. The rise will come in two waves, with a 3 cent price bump applied to Nov. 28 shipments and another 3 cent upswing for the petroleum-based fiber kicking in for the new year. “Polyester raw material costs continue to rise on a monthly basis, setting new record highs,” Joe Tucker, vice president of the fibers and recycled products group, said in a statement. “The industry has also experienced sharp increases in energy costs. These two increases are necessary to offset these raw material and energy cost increases.”
GADZOOKS GETS LOAN: Bankrupt teen-girl retailer Gadzooks has secured a $5 million Tranche B term loan from Gryphon Master Fund LP, following approval from a Texas U.S. bankruptcy court. The loan will provide “seasonal borrowing capacity” for the company’s bid to dig out from bankruptcy by the first half of 2005, the retailer said in a statement. The company also said plans for reorganization had been approved by its committee of unsecured creditors, the committee of equity holders and Gryphon. According to the company, the plan for reorganization will be filed with the court by Saturday.