by The Editors on May 18, 2009
According to legal documents linked up by Josh Hunter at Transworld Business, Zumiez has apparently offered $7.2 million for The Active Wallace Group.
Based on the offer made by Zumiez, Active proposes to sell its assets for a total consideration of up to as much as $7.2 million cash, depending upon the outcome of Zumiez valuation of inventory and determination of number of stores to acquire. The total consideration offered to be paid by Zumiez in this case is based on the following formula:
1.) Inventory valued at the lower of cost or market, as determined by an appraiser hired by Zumiez;
2.) $100,000 per store to be purchased by Zumiez; and
3.) Assumption of gift card certificates up to $1.3 million, with total consideration to be adjusted if gift card liability is in excess of $1.3 million.
Crazy days indeed. Odd how quickly things can turn around. Click here to download the entire legal document from TransWorld Business. We’d suggest you read Tiffany Montgomery’s story on Shop-eat-surf.com, too, but you’d have to become an executive member to access the entire piece.
[Link: Transworld Business via Boardistan Commentor]
by The Editors on May 16, 2009
There’s just nothing like a $49.99 O’Neill Costco spring suit to keep that morning chill off the bones.
by The Editors on May 15, 2009
Rob Dyrdek is a trooper. He’ll go out and sell and sell and sell. He’ll even do in-store appearances for DC Shoes at Sport Chalet over in the skate department between the climbing gear and the trampolines.
Craig Levra, Chairman and CEO of Sport Chalet, stated, “We are continuously working to bring unique experiences to our customers that are relevant to their sport of choice. Rob is an icon in skateboarding and an inspiration to many of our customers and we are delighted to have him in our stores this month.”
On Sunday May 17, 2009 from 2 p.m. to 2 p.m. he’ll be in La Canada, California and on May 20, 2009 he’ll be in Tempe, Arizona. And you know what? He’ll do a great job and all the kids will go home happy. Is that so wrong?
[click to continue…]
by The Editors on May 11, 2009
Get all the details from Volcom’s recent SEC filling right here. We haven’t read the entire document, but this caught our eye:
Sales to Pacific Sunwear increased 21.8%, or $1.5 million, for the three months ended March 31, 2009 compared to the three months ended March 31, 2008. We currently expect a decrease in 2009 revenue from Pacific Sunwear compared to 2008. It is unclear where our sales to Pacific Sunwear will trend in the longer term.
As PacSun sales fall, Volcom gets further into bed with the mall. Maybe that’s because VeeCo is the only brand that is checking. Read the rest for yerself.
[Link: MarketWatch]
by The Editors on May 6, 2009
The action sports fashion retail story continues to be grim, but not as grim as analysts had predicted at Zumiez. Today the mall store reported that April sales were only down 13.8 percent versus last year.
Analysts, on average, had expected the same-store sales to fall 14.1%, according to Thomson Reuters. Total net sales for the four-week period ended May 2 decreased 1.7% to $23.8 million, said the specialty apparel retailer.
Not too bad, really.
[Link: Marketwatch.com]
by The Editors on May 5, 2009
This comes as no surprise, but it appears that the board of directors at West 49 has rejected Adrenalina’s offer to purchase the company.
West 49 Inc.’s board of directors has unanimously rejected the unsolicited proposal as it does not believe that pursuing Adrenalina’s proposal is in the best interests of West 49 Inc. or its shareholders. The board of directors noted that Adrenalina is an unlisted U.S. public company that has recently indicated that it does not have the financial resources to file its legally required annual report, that has an unproven business model and operates a very small number of highly expensive retail stores in the U.S., and that has recently made a similar and unsuccessful unsolicited attempt to acquire Pacific Sunwear of California, Inc.
Owwwhh, burn.
[Link: Newswire.ca]
by The Editors on May 4, 2009
Reno’s monsterous shopping zone The Legends at Sparks Marina is set to open on June 18, 2009 and aside from a Best Buy, Target, and Banana Republic, the mall will also include a Volcom outlet store.
Oddly, neither this new one in Reno, nor the outlet in Preferred Outlets of Tulare, California are listed on Volcom site. Strange, isn’t it?
[Link: About.com]
by The Editors on May 4, 2009
Not content with wading through the press with buyout talks and board member suggestions for Pac Sun Adrenalina CEO Ilia Lekach now wants to buy Canada’s West 49 for 55 cents (Canadian) a share, according to a story on Google news.
“The business synergies from joining West 49 Inc.’s substantial store footprint with Adrenalina’s high-growth lifestyle retailing concept are compelling – especially in this challenging economic environment,” said Ilia Lekach, chairman and CEO of Miami-based Adrenalina in a release.
We can say that $35 million Canadian seems a little more realistic for the four-store chain than the $293 million they wanted to pay for Pac Sun Then again, who doesn’t Lekach believe Adrenalina has “synergies” with.
[Link: Google]
by The Editors on April 22, 2009
West 49, the Zumiez of Canada, announced that it lost $8.5-million its fourth quarter ended Jan. 31 “after booking $9.6 million after tax in writedowns of goodwill and other assets, and is in trouble with its bankers,” according to a story in The Star.
For all of last year, which included an extra week compared with the company’s prior financial year, sales rose 2.7 per cent to $210.4 million from $204.9 million. West 49 said it lost $12.3 million, 19 cents per share, compared with the previous annual loss of $2.4 million, four cents per share. Excluding one-time items, the full-year loss was $2.6 million, down from a prior-year profit of $1.5 million.
Not too shabby compared to other mall retailers.
[Link: The Star]
by The Editors on April 21, 2009
According to legal documents linked up by Josh Hunter at Transworld Business, Zumiez has apparently offered $7.2 million for The Active Wallace Group.
