The parent company of Eddie Bauer and Pacific Sunwear of California is considering a merger of the two retailers in an effort to consolidate stores, as well as survive a prolonged downturn in the American brick-and-mortar retail sector.
Citing sources familiar with the situation, CNBC reported that Eddie Bauer and Pacific Sunwear, which have both filed for bankruptcy in the past, are looking for ways to grow. In a merger, the companies could also bring their store counts down from their combined current total of nearly 700.
Both retailers are owned by private equity firm Golden Gate Capital, which has not decided whether to merge the two companies and has declined to comment. Eddie Bauer also declined to comment, while Pacific Sunwear could not be reached for comment.
According to sources, Washington-based Eddie Bauer hired investment banks last year to explore strategic alternatives, including a potential sale. The retailer, which specializes in outdoor gear and apparel, has a US$218 million term loan and a US$200 million revolving credit line. One source said that the company’s same-store sales are up 5% so far this year.
Full Content: CNBC
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
NFL Found Guilty of Antitrust Violations in ‘Sunday Ticket’ Trial, Must Pay $4.8 Billion
Jun 27, 2024 by
CPI
StarKist and Former Bumble Bee Foods Owner Settle US Price-Fixing Suit
Jun 27, 2024 by
CPI
Senate Probes Oil Giants for Price-Fixing with OPEC
Jun 27, 2024 by
CPI
Spain to Lodge Anti-Competitive Complaint Against French Rail Operator Ouigo
Jun 27, 2024 by
CPI
Jury Deliberates NFL’s ‘Sunday Ticket’ Class-Action Lawsuit
Jun 27, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Private Equity Roll-Up Schemes
Jun 28, 2024 by
CPI
The FTC’s Focus on Private Equity is Warranted
Jun 28, 2024 by
CPI
Unraveling the Roll-Up: Private Equity’s Misunderstood Investment Strategy
Jun 28, 2024 by
CPI
Antitrust Focus on Private Equity Funds and Serial Acquisitions
Jun 28, 2024 by
CPI
Private Equity Roll-Ups Amidst Heightened Antitrust Enforcement
Jun 28, 2024 by
CPI