Charlotte Russe Shareholder Criticizes Bid Rebuff
New York City Charlotte Russe Holdings Inc. shareholder B. Riley & Co. LLC said Tuesday that the retailer should not have spurned a takeover offer by KarpReilly Capital Partners LP and H.I.G. Capital LLC, according to the Associated Press.
Charlotte Russe in November opposed a nearly $200 million takeover offer by KarpReilly and H.I.G. Capital, saying it wanted to stick to its turnaround plan. The bid was valued at $188.1 million to $198.6 million, a premium of 31% to 38% over Charlotte Russe’s closing stock price the day before the offer.
In a letter, B. Riley asked Charlotte Russe to explain why it decided to terminate negotiations with KarpReily.
“We are deeply troubled by the recent actions taken by directors and members of management,” the letter said, “including the corporate governance missteps and the strategic and operational direction of the company.”
B. Riley also raised concerns about appointments to Charlotte Russe’s board, the conditions that caused CEO Mark Hoffman to retire, and a stockholder-rights plan.
Charlotte Russe said in August the plan was not adopted in response to any specific proposal and is not intended to prevent a takeover.
Also, B. Riley called recent management changes a “debacle,” saying the board “seemingly forced” Hoffman’s departure in July and believes new executives lack the experience needed for the junior apparel business.
Jeffries to continue on as A&F ceo
NEW ALBANY Abercrombie & Fitch announced that it had entered into a new employment agreement with Michael Jeffries, the company’s chairman and chief executive officer.
Jeffries’ prior employment agreement was scheduled to expire on Dec. 31. The new employment agreement, which is being filed with the Securities and Exchange Commission today as an exhibit to a Form 8-K, is scheduled to expire on Feb. 1, 2014.
CVS confirms FY earnings guidance
WOONSOCKET, R.I. CVS Caremark has issued a confirmation of its 2008 earnings guidance range, previously given during the company’s third quarter conference call on Oct. 30.
CVS Caremark expects diluted, adjusted earnings per share of $2.42 to $2.47 for FY 2008, including the impact of the Longs Drugs transaction.
“There is no question that the economy continues to be difficult and consumers are reacting with increasing caution,” said Tom Ryan, chairman, president and ceo of CVS Caremark. “Our total same-store sales for October grew 4.3%, and in November were up 6.1%. It appears that December’s comps will be well short of those levels. Nevertheless, through careful margin and cost management, we expect to be able to deliver results within our previously announced earnings range for 2008.”