Camuto Group is now the proud owner of 3 million shares of common stock in its latest licensee, Bernard Chaus Inc.
This story first appeared in the February 11, 2011 issue of WWD. Subscribe Today.
Camuto earlier this month purchased half of the 6 million shares repurchased by Chaus from Kenneth Cole Productions Inc. following the termination of Chaus’ licensing agreement with KCP, according to a regulatory filing by Chaus with the Securities and Exchange Commission. KCP, which acquired its stake for $1 a share upon the initiation of its Chaus licensing deal in June 2005, sold them back at 10 cents a share last month. Chaus funded the $600,000 expense through a short-term extension of credit by the CIT Group.
Although the price paid by Camuto wasn’t disclosed, Chaus shares closed at 17 cents a share Thursday.
The 3 million shares currently held by Camuto represent 8.7 percent of the 34.5 million outstanding.
Chaus said in its Form 10-Q filing with the SEC that Camuto “and another party with whom the company has a commercial relationship” have expressed interest in the remaining 3 million shares bought back by Chaus, with a sale expected this month.