No dice. The Perry Ellis Special Committee has ended discussions with Randa Accessories and reiterated a commitment to a $437 million transaction it inked with George Feldenkreis to take the company private.
The special committee confirmed a story in WWD Monday that a decision was at hand following a response from an inbound licensor that it would not approve a change in control of the license to Randa should it buy the company. It said the inbound licensor was the company’s largest, leaving speculation that it was Nike Inc., which has a business with Perry Ellis valued at more than $100 million.
Randa on Friday had sent a letter to the special committee indicating a willingness to raise it per-share offer price provided Feldenkreis and his son Oscar, the company’s chief executive officer, would help Randa secure the approval of inbound licensees.
The special committee said regardless of the decision of the Feldenkreises, and the fact that Randa won’t waive the precondition requiring inbound licensee approval, it didn’t think further talks with Randa would lead to a superior proposal.
David J. Katz, Randa’s executive vice president and chief marketing officer, said, “While we cannot comment on the potential sale of Perry Ellis International, Randa has clearly demonstrated our desire to invest in further strategic acquisitions as well as our ability to finance sizable deals. We look forward to remaining active in the M&A market as we leverage our platform to build Randa for the future.”
Perry Ellis ceo Oscar Feldenkreis did not respond to a request for comment.
Shares of Perry Ellis on Tuesday fell 5.4 percent to close at $27.52 in trading on the NasdaqGS.