X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

PHILADELPHA-The acquisition of locally based Deb Shops Inc. by an entity of New York City-based Lee Equity Partners LLC has been completed in an all-cash transaction valued at $395 million, as GSR previously reported http://www.globest.com/news/958_958/gsrnortheast/162672-1.html.Deb Shops’ shareholders voted in favor of the sale at a special meeting on Oct. 16.

They are entitled to $27.25 for each Deb Shops’ share, which, at the time the agreement was announced, represented a premium of 2.1% over the trading price of the company’s common stock in July. With the close of the sale on Oct. 24, shares of the teen-apparel retail firm ceased trading on the Nasdaq. Just prior to the delisting, the stock was trading at $27.23 a share.

Vienna, VA-based Proxy Governance Inc., an independent proxy advisory firm, had advised shareholders to reject the proposed takeover. “Based on the recent trading history and the available equity analyst opinion,” Proxy Governance said in a July report, “it is not clear that the company’s performance justifies such a small premium.” The report also suggested that the retailer’s board “should have provided far closer oversight of the (sale negotiation) process.”

Under the terms of the agreement, Allen Questrom, a Lee Equity senior advisor who is credited with the turnaround of JC Penney, will serve as non-executive chair of Deb Shops. According to a statement by the retailer, he will “provide significant strategic direction and leadership to the company’s current senior management team.”

Marvin Rounick, former president and CEO, and Warren Weiner, former EVP, drop their titles. According to the statement, both will provide consulting services for three years.

Deb Shops’ September same-store sales fell 3.8% compared with the same month a year ago. Total sales for the month ended this Sept. 30 were $28.2 million, down slightly from $28.3 million in September 2006.

Deb Shops operates 347 specialty apparel stores in 43 states under the DEB and Tops N’ Bottoms names. It targets juniors with regular and plus sizes.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.