News

Report: J. Crew $10 million settlement of TPG buyout suit unravels

BY CSA STAFF

New York City — A report released Monday by Bloomberg said that J. Crew Group’s $10 million settlement of an investor lawsuit over the proposed takeover by private-equity firms TPG Capital and Leonard Green & Partners LP has fallen apart.

Citing a lawyer for the shareholders, the report said that J. Crew officials undermined a deal in which the clothier agreed to extend the period to solicit competing offers to the $3 billion buyout bid. The accord also included a $10 million payment to plaintiffs.

Executives of New York-based J. Crew have “sent the signal to the world that they are investing all resources in closing the deal with TPG as soon as possible and nobody else should bother to bid for J. Crew,” attorney Stuart Grant wrote in a letter to Delaware Chancery Court Judge Leo Strine in Wilmington.

Shareholders had filed complaints questioning whether J. Crew CEO Mickey Drexler, who began negotiating with the buyout firms months before the deal became public, got a fair price from TPG and Leonard Green.

The parties agreed in a settlement announced Jan. 18 that TPG and Leonard Green would accept a smaller $20 million payment if J. Crew accepted a competing offer. The original $27 million fee, equal to about 1% of the purchase price, was already lower than the typical breakup fee. TPG and Leonard Green offered $43.50 a share for J. Crew on Nov. 23.

Disgruntled J. Crew investors will press ahead with their claims and seek a “significant monetary recovery after a trial,” Grant said in the letter.

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REAL ESTATE

Asics opens futuristic flagship in Amsterdam

BY CSA STAFF

New York City — Athletic goods and footwear company Asics has opened an ultra-modern flagship in Amsterdam, The Netherlands. The two-level store, located next to the city’s legendary Vondelpark running center, has a sleek, futuristic design and offers several exclusive services, including advanced biomechanical and running analysis systems. Click here to see photos.

“The Asics Flagship Store in Amsterdam is more than a store. The services we are offering here, such as the professional Running LAB or the Running Club, are unique. It will offer the full Asics running experience and help us build a strong relationship with our customers. We believe that the success of this store will lead to more Asics stores opening in major European capitals,” said Fernando Pina Mulas, head of retail at ASICS Europe B.V.

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STORE SPACES

Tesco rolling out energy display screens to 500 locations

BY CSA STAFF

New York City — Tesco PLC will install touch-screen energy display boards in 500 locations across the United Kingdom. The screens, which will be located in staff areas, will display which areas of the store are consuming the most energy. The hope is that the associates will respond and adjust energy usage as needed throughout the day.

Tesco made the decision to roll out the screens after a nine-store pilot. The test resulted in a 2% to 3% drop in total energy consumption. The retailer described the cut in energy costs as "a huge margin" for one piece of equipment.

According to Tesco, not only do the energy display screens get employees involved, but they help further reduce the stores’ carbon footprint by removing the need for reams of paper data that detail the store’s energy consumption.

"This is an exciting development in Tesco’s long term plans to reduce the carbon footprint of its stores by 2020,” stated Richard Lee, head of energy at Tesco. “The energy boards also present a visual snapshot of the data, which is far more meaningful that reams of paper based data and empowers people to actively promote energy saving."

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