Perry Ellis founder, former chairman makes purchase bid
George Feldenkreis, founder of Perry Ellis International Inc, has reportedly made a bid to purchase the American apparel firm, after being ousted from his role of executive chairman six months ago, the Wall Street Journal reported.
Sources told the WSJ late on Tuesday that Feldenkreis, who founded Perry Ellis’s predecessor in the 1960s and led the company for 50 years, sent a letter to its board earlier in the day with the proposal.
It is believed that Feldenkreis has offered to pay $27.50 a share, or about $430 million, for the company, and that the former-executive is saddling up with private-equity firm Fortress Investment Group LLC on the bid to take Perry Ellis private.
Shares of the company increased 10.7% to $25.65 in after-hours trading Tuesday following the news.
According to a December 8 regulatory filing, Feldenkreis already controls an 11.3% stake in the company, making him its largest shareholder.
The reported offer comes just six months after Feldenkreis was ousted as executive chairman. The businessman had been serving as company chairman and chief executive officer since 1993. In 2015, a fellow investor pushed for the two positions to be separated, seeing Feldenkreis become executive chairman with son Oscar Feldenkreis named president in April 2016. The former was removed from the position of executive chairman in September when the board eliminated the role. J. David Scheiner, a former Macy's executive, was named non-executive chairman.
Since his departure, Feldenkreis continues to sit on the board. Perry Ellis could not be contacted after hours. Feldenkreis could not be reached for comment.
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