Currently, Newcastle owns an aggregate of approximately two-million shares or nearly 14.5% of common stock of Whitehall Jewellers Inc. This is the second offer Newcastle has made. In November, the company extended an offer to acquire the company for $15.4 million or $1.10 per share. However, Whitehall, under the leadership of Prentice Capital Management LP and Holtzman Opportunity Fund LP, refused the offer.
In October, Whitehall announced the much-needed financial support of Prentice and Holtzman. In exchange for $80 million in total bridge financing from the investment funds, Whitehall gave up 87% of its equity and a majority of board seats.
The company's board of directors—now one member short with the resignation of Steven Pully on Nov. 29—will recommend acceptance or rejection of the tender offer on or before Dec. 16.
Whitehall Jewellers is a national specialty retailer of fine jewelry, operating 389 stores in 38 states, but the company intends to close 77 stores in the near term. The retailer operates stores in regional and super regional shopping malls under the names Whitehall Co. Jewellers, Lundstrom Jewelers and Marks Bros. Jewelers.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
