Small retailer Adrenalina of Miami said Wednesday it wants to meet with Anaheim-based Pacific Sunwear of California Inc.’s chairman and chief executive to discuss a buyout and avoid a proxy fight.
In a letter to Pacific Sunwear’s Sally Frame Kasaks, Adrenalina Chief Executive Ilia Lekach said it would be in the best interest of shareholders to have the two executives conduct acquisition talks in order to avoid an expensive proxy war.
“It is in the best interest of all shareholders to avoid the costs and distractions of a proxy contest,” Lekach wrote.
In October, Adrenalina made a second, higher $329 million offer for Pacific Sunwear,
Pacific Sunwear rejected the offer, saying it wasn’t in the best interest of shareholders.
Lekach’s letter comes just days after Adrenalina announced on Monday that it would withdraw its offer to buy Pacific Sunwear and take a buyout offer directly to shareholders at the struggling surf-inspired retailer.
Adrenalina, which owns a stake in Pacific Sunwear, said it planned to significantly increase its number of shares for a possible takeover.
The company said it has discussed a possible buyout with some of Pacific Sunwear’s largest shareholders and has been met with support.
Adrenalina said it could look to replace Pacific Sunwear’s existing board members if the company’s plan is successful.
Pacific Sunwear disregarded Adrenalina’s plan, saying the company “remains committed to executing on (its) strategic plan to create long-term shareholder value.”
Pacific Sunwear has seen its stock fall about 90% for the year with a recent market value of $130 million.
The company, which runs some 940 mall stores and outlets, has worked hard to rebuild itself after a series of fashion missteps and falling sales.
But the economic downturn hasn’t made a turnaround easy.
The company saw sales at stores open at least a year fall 10% last month.
