This story first appeared in the January 26, 2004 issue of WWD. Subscribe Today.
- BAFIN CAPS TCHIBO: BaFin, the German financial regulator, ruled Friday that Tchibo must not make an offer for the remaining Beiersdorf shares. It nixed hopes of a better deal for minority shareholders in Beiersdorf. These had asked BaFin to look into Tchibo’s exemption from a new German takeover regulation requiring anyone acquiring more than 30 percent of a firm to make an equal offer for all outstanding shares. However, Tchibo, which led a consortium that acquired 40 percent of Beiersdorf from Allianz, already owned a 30 percent stake in the German maker of Nivea at the time of the deal.
- GADZOOKS RETAINS NEW ADVISORS: Gadzooks Inc. has hired new advisors and formed a special committee of its board of directors to oversee the continued restructuring of the company that began last year. The Dallas-based teen retailer said last month that it may have to seek Chapter 11 bankruptcy protection, and in a statement put out late Friday, Gadzooks chairman Jerry Szczepanski said results of the chain’s conversion to women’s-only apparel “are not up to our expectations.” The company has also hired three consulting firms: Glass & Associates will serve as the chief restructuring advisor, while DJM Asset Management will provide real estate advice, and Herbert Mines Associates will recruit a senior retail executive to work with the chairman and the board. William C, Bousquette, a director since 2001, was elected chairman of the new restructuring committee. Also elected to serve on the committee are directors Ron Stegall and G. Michael Machens. In addition, board member Carol Greer has been hired on a consulting basis to direct the merchandise operations. Gadzooks, which now operates 410 stores, has seen six months of steep same-store sales declines, including a 25.2 percent drop in December.