GADZOOKS FILES FOR A SECONDARY OFFERING
NEW YORK — Gadzooks Inc., the Dallas-based teenager apparel chain, filed for a secondary offering of 1.25 million shares, with 400,000 to be sold by the company and 850,000 by selling shareholders.
At the current market price of around $24, the company will raise $9.5 million, which will be used to open 45 to 50 stores in 1996.
Selling shareholders will raise a combined $20 million from the sales.
They primarily consist of venture capital funds: Chancellor Capital Management, New York; Philips-Smith Specialty Retail Group II LP, Dallas, and InterWest Partners IV LP, Menlo Park, Calif..
The funds acquired stock in the company in a 1992 recapitalization for $1 a share.
News of the company’s planned filing was previously announced, but the number of shares to be sold by selling shareholders was not indicated.
Gadzooks, which operates 126 stores in the Southwest, Midwest and Southeast, went public in October 1995 at $14 in a 1.73 million share offering.
In the nine months ended Oct. 28, the retailer’s profits soared 82.2 percent to $1.9 million, or 43 cents; sales climbed 46.5 percent to $54.8 million, and same-store sales rose 14.2 percent. — Fairchild News Service