Anaheim-based Pacific Sunwear of California Inc. received and rejected another buyout offer from small retailer Adrenalina of Miami.
Adrenalina is offering to buy Pacific Sunwear for $329 million in a combination of cash and stock.
Pacific Sunwear rejected the deal late Wednesday, saying that it wasn’t in the best interest of shareholders.
The offer comes after Pacific Sunwear’s board of directors rejected Adrenalina’s previous bid to buy the company for $296 million last week.
Adrenalina said Wednesday that it resubmitted its proposal to Pacific Sunwear’s board to enter into negotiations.
“I call on the PacSun Board of Directors to act in the best interests of their shareholders by engaging in discussions with Adrenalina to implement our proposal,” said Adrenalina Chief Executive Illia Lekach in a statement. “We believe their board acted hastily and without full consideration in rejecting our earlier offer.”
Adrenalina said it has identified “strategic partners, wealthy individuals and institutional investors” ready to provide funding for the deal.
Pacific Sunwear, which sells clothing inspired by surfing and skateboarding, 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 $200 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.
