Mergers & Acquisitions

Declining mall traffic is taking a toll on Perfumania.   Perfumania Holdings Inc. has hired advisers to explore strategic alternatives, including a debt restructuring, Reuters reported. It also plans to negotiate with landlords to exit some of its 313 Perfumania stores.   The company recorded debt of approximately $164 million on Oct. 29 and $2.1 million in cash and cash equivalents, the report said.  

The $500 million sale of online diamond and jewelry retailer Blue Nile has been completed.   The company was acquired by an investor group comprised of Bain Capital Private Equity, Bow Street and Adama Partners for $40.75 per share in cash. The transaction, first announced on Nov. 7, 2016, was approved by shareholders on Feb.2, 2017.  

It’s closing time for MC Sports.   The chain, which filed for Chapter 11 bankruptcy protection on Feb. 14, is closing all 66 of its stores across the Midwest. A joint venture between Tiger Capital Group and Great American Group is conducting the going-out-of-business sales, which are now underway.  

Thomas “TJ” Drought, who spent nearly 20 years in the employ of WP Glimcher, has joined Steiner + Associates as an executive VP.  

A new company is interested in The Limited.   Sunrise Brands LLC has bid for the bankrupt apparel retailer’s e-commerce business and intellectual property, a move that challenges a $26.3 million offer from private equity firm Sycamore Partners, Reuters said.   

Round 1, the retail center amusement concept from Japan, has signed a lease for the vacated Macy’s anchor space at Northwoods Mall in Peoria, Illinois. Washington Prime Group, the mall’s owner, purchased the store from Macy’s last month.   Washington Prime CEO Lou Conforti hailed the singing as an example of a corporate objective to use redevelopment to foster “differentiated tenancy, especially dining and entertainment alternatives.”  

GNC Holdings Inc. on Thursday posted dismal results for its fourth quarter and said it was suspending its quarterly dividend in a move to reduce its debt.   The nutritional supplements retailer posted a loss of $433.4 million, or $6.35 a share, compared to a profit of $42.9 million in the year-ago period. Excluding certain items, earnings came in at 7 cents per share, well below the 36 cents that Wall Street analysts expected.  

The baton has been passed at Beauty Brands as it looks to enter its “next phase of growth.”   The Kansas City-based retailer has named Caryn Lerner as CEO, succeeding Lyn Kirby, who will remain chairman. Kirby is part of the group that bought Beauty Brands in 2014 from founder Bob Bernstein. Since then, she has served as CEO and chairman of the company, reportedly commuting between Chicago and Kansas City.  Prior to Beauty Brands, Kirby served as CEO of Ulta Beauty.   

Walgreens Boots Alliance’s acquisition of Rite Aid is moving closer to getting a green light from the Federal Trade Commission.       The FTC is expected to approve the sale in the next two to four weeks, reported the New York Post, citing two sources close to the situation.   The major sticking point was reportedly the number of Rite Aid stores that need to be divested to Fred’s Pharmacy.      

An Indianapolis-based appliance and electronics chain is bringing in outside help as it struggles with sinking sales.    Hhgregg announced that it has engaged subsidiaries of Stifel Financial Corp. for advice on potential strategic and financial transactions as the retailer works to improve liquidity and return to profitability.