DYLEX EYEING MERGER OR SALE
NEW YORK — Dylex Ltd., a Toronto-based retail conglomerate, said it might pursue a merger or sale of all or part of the firm.
Dylex also said Elliot Wahle would resign as president and chief executive Jan. 31 and that chairman William Anderson would succeed him.
Nesbitt Burns Inc., hired in October to split off the 287-unit Bi-Way discount chain, will look into options for the entire business.
The firm operates 350 apparel stores under the Braemar, Fairweather, Thriftys, Tip Top and Labels banners.
“We believe the sum of the value of the individual businesses is worth substantially more than the current market capitalization of the company,” Anderson said in a statement.
Shares in Dylex closed at $1.41, down 5 cents, on the Toronto Stock Exchange Wednesday. The stock sunk to a 52-week low of $1.16 Monday and has traded as high as $3.35 in the past 12 months.
Dylex in November revised its projected loss for the year ended next Jan. 31 to $21 million. Earlier, the company projected a $10 million loss, primarily due to losses at Bi-Way. The retailer’s annual sales are about $350 million.