Former Perry Ellis Chairman George Feldenkreis Offers To Buy Company For $430 Million

Perry Ellis Men’s Fall 2018

UNITED STATES, NEW YORK— Perry Ellis International Inc‘s former chairman & CEO George Feldenkreis, who is also the company’s largest shareholder, offered $27.50 per Perry Ellis share. Yesterday Wednesday (February 7), he offered to buy the clothing company for $430 million with a plan to take the company private.

The deal would be financed with a combination of debt and equity, according to a regulatory filing.

The financing is backed by a $300 million commitment from Fortress Investment. The offer price represents an 18.6 percent premium to the stock’s closing price on Tuesday

Perry Ellis confirmed that it received the offer from Feldenkreis and would review the proposal.

“I am not comfortable with the motivations, strategy and oversight of the existing board and believe shareholder value will suffer under this board’s stewardship,” Feldenkreis said in a letter to the company’s board.

He also said, as a public company, Perry Ellis is held back by short-term objectives and that the board is reluctant to take risks and is unprepared to underwrite business initiatives and opportunities to drive shareholder value.

In related Perry Ellis news, the American fashion house presented their Fall/Winter 2018 Menswear collection at New York Fashion Week Men’s. The runway show took place at the brand’s New York headquarters in the Hippodrome building in Midtown, Manhattan (see the recap here).

Perry Ellis Men’s Fall 2018

Photos Credit: Via WWD

Source: BoF