Perry Ellis International has entered into a definitive merger agreement to be taken private under a newly formed entity controlled by Founder and Director George Feldenkreis. The transaction, which was unanimously approved by the Board of Directors, is valued at approximately $437 million.
Feldenkreis will take an active role in the company following the completion of the transaction, which is expected to close in the second half of 2018. The current CEO, Oscar Feldenkreis will remain in his current position. Oscar Feldenkreis is the son of George Feldenkreis.
“The completion of this transaction will enable Perry Ellis to preserve the integrity of its infrastructure and business units across the U.S. and abroad,” said Oscar Feldenkreis in a statement. “Perry Ellis intends to be at the forefront of the crucial digital transformation of the apparel industry from marketing to e-Commerce, to applications of artificial intelligence.”
Struggling GameStop Mulls Potential Sale
GameStop also is in talks to be taken private, with Sycamore Partners among the groups expressing interest in the 7,000+-store video game and electronics retailer, according to CNBC. However, there is no guarantee that the talks will result in a sale.
Founded in 1984, GameStop has been undergoing executive turmoil recently: CEO Michael Mauler stepped down just three months after starting in the position in May, for “personal reasons.” During Mauler’s tenure, COO Tony Bartel and EVP Michael Hogan were fired, while CIO Michael Cooper and CMO Randy Gier left the company voluntarily.
GameStop has been struggling financially despite a solid performance in its physical stores. Total global sales increased 15% in Q4 2017, but the company reported a net loss of $105.9 million. The retailer’s poor performance has been blamed on heavy competition from digital downloads.