GameStop reportedly in talks with buyout firms
The nation’s leading — and struggling — video-game retailer may be looking to leave the public arena.
Reuters reported that GameStop Corp is in talks with private equity firms about a potential transaction after receiving buyout interest. Sycamore Partners is reportedly one of the firms that has expressed interest in the retailer.
GameStop has been struggling in the online-dominated video-game industry. Michael Mauler, company CEO, recently resigned, after only three months on the job. Board member and GameStop co-founder Daniel DeMatteo is serving as interim CEO during the search for a new chief executive
GameStop has hired a financial advisor to assist in in its discussions with the buyout firms, Reuters said.
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Done deal—Finish Line acquired
The largest sporting goods retailer in the U.K., JD Sports Fashion plc, has completed its acquisition of The Finish Line.
Under the terms of the agreement, Finish Line has become an indirect wholly-owned subsidiary of JD Sports. The deal was announced in March and valued at $558 million. JD Sports operates more than 1,400 stores globally across various banners.
“This marks a momentous step in JD Sports’ global expansion and represents an exciting opportunity to bring our market leading, multi-brand retail proposition to the world’s largest athleisure market, both online and in stores,” said Peter Cowgill, executive chairman of JD Sports. “Our team will now collaborate with the experienced Finish Line management team and the key global brands to bring best in class retail theatre and multi-channel consumer experience to the U.S.”
Finish Line has approximately 556 stores, mostly in malls, and 375 in-store shops inside Macy’s department stores. The retailer has been updating its flagships to a new format that puts technology at the center of the store’s total experience, creating immersive customer interactions.
Sam Sato, CEO of Finish Line, said that, with the completion of the deal, Finish Line “opens an exciting new chapter.” The chain’s current management is expected to stay in place.
“With a global footprint, together we will bring leading-edge innovation and service to our customers,” Sato stated. “Our shared vision and drive to provide a premium retail experience will further our impact as a leading, premium multichannel retailer of sports, fashion and outdoor brands.”
BJ’s readies for IPO
BJ’s Wholesale Club is has set the terms for its upcoming initial public offerings.
The warehouse-club retailer said in a regulatory filing that it plans to offer 37.5 million shares in a range of $15 to $17 a share, giving the company a market capitalization of up to $2.15 billion.
In 2011, BJ’s was acquired and taken private by CVC and Leonard Green & Partners in a $2.8 billion deal. The company announced in May it had filed for a U.S. initial public offering.
Based in Westborough, Massachusetts, BJ’s has 215 locations in 16 states. The company generated net income of $50 million on total sales of $12.8 billion in fiscal 2017.
The retailer plans to list on the New York Stock Exchange under the ticker symbol “BJ.”