Anaheim-based Pacific Sunwear of California Inc.’s board has rejected a longshot bid for the company by small retailer Adrenalina of Miami.
The $296 million cash and stock offer wasn’t “in the best interest of the company’s shareholders,” the directors said.
Adrenalina made its offer on Monday. The unsolicited bid came after Pacific Sunwear Chief Executive Sally Frame Kasaks repeatedly declined prior attempts to enter talks, according to Ilia Lekach, chief executive of Adrenalina.
Pacific Sunwear has been struggling with a weak economy that has hurt retailers especially hard. The company’s shares are down about 70% for the year with a recent market value of $235 million.
Pacific Sunwear runs 813 mall and outlet stores across the country.
Adrenalina runs what it calls “extreme stores” that sell clothes and sports equipment. Like Pacific Sunwear, the stores sell clothes from many of Orange County’s surf-inspired clothing makers.
The company’s stores are in Florida, Georgia, Texas, Colorado and New York. They feature an indoor surfing ride.
Adrenalina’s shares trade on the low-profile Bulletin Board exchange with a recent market value of $35 million.
As of June 30, Adrenalina had $330,000 in cash and equivalents, according to a filing with the Securities and Exchange Commission.
The company had June quarter sales of $1.1 million with a net loss of $1.8 million.
