stein mart merger

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stein mart merger

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16, 2020 at 4:22 p.m. Stein Mart is far from the only major retail bankruptcy to come out of the coronavirus. The off-pricer retailer and Kingswood Capital Management have mutually agreed to terminate their merger …

Feb 5, 2020 Facing a threat of falling off the Nasdaq Stock Market, Stein Mart Inc. has entered into a merger deal to become part of the private equity firm Kingswood Capital Management L.P. In January, Stein Mart entered into a merger agreement with Kingswood Capital LLC, which is managed by company chairman Jay Stein, but the agreement fell apart because of the pandemic.

The termination was approved by the Stein Mart Board of Directors (other than Mr. Stein) acting on the recommendation of the Special Committee of independent directors that oversaw negotiation of the merger agreement, and is in response to the unpredictable economic conditions resulting from the global health crisis caused by the coronavirus (COVID-19) pandemic, uncertainty regarding Stein Mart’s ability to satisfy the conditions to closing, and the substantial expense to Stein Mart of soliciting shareholder approval for a transaction which is unlikely to close.In a joint statement, Richard L. Sisisky, Stein Mart Board member and Chairman of the Special Committee, and Alex Wolf, Managing Partner of Kingswood, said, “While we both believed in the benefits of the proposed transaction, we have mutually concluded after careful consideration that given the current environment and significant uncertainty, it would not be prudent to continue to pursue the transaction.”Because the decision to terminate the agreement was mutual, neither company will be required to pay the other a termination fee. The company’s efforts to find a buyer, or additional sources of financing, with the assistance of PJ Solomon Securities, were unsuccessful following the termination of the prior merger agreement with Kingswood, and an entity managed by Jay Stein, chairman of Stein Mart, in April.

Jacksonville-based Stein Mart is planning to close most, if not all, of its stores following a Chapter 11 bankruptcy filing, the company said on Wednesday.The discount retail clothing store said in court documents that the COVID-19 pandemic ultimately pushed it over the edge, although its sales have been declining for years because of the growing market share of Things again took a turn for the worse when COVID-19 cases started to rise in Texas, California and Arizona — the states where the company has the biggest brick-and-mortar presence.

As reported, Stein Mart’s net earnings for the year ended Feb. 1 grew 34.8 percent to $20.7 million, or 50 cents a share. The company is evaluating any and all strategic alternatives, including the potential sale of its e-commerce business and related intellectual property.

The termination was approved by the Stein Mart board.The deal was pulled in response to the unpredictable economic conditions resulting from the global health crisis caused by the coronavirus pandemic, uncertainty regarding Stein Mart’s ability to satisfy the conditions to closing and the substantial expense to Stein Mart of soliciting shareholder approval for a transaction which is unlikely to close.Neither party will be required to pay the other a termination fee as a result of the mutual decision to terminate the agreement. In January, Stein Mart entered into a merger agreement with Kingswood Capital LLC, which is managed by company chairman Jay Stein, but the agreement fell apart because of the pandemic. Merger Arbitrage Mondays - 7 Deals Close But Spreads Remain Wide Apr.

Press Release Stein Mart and Kingswood Announce Mutual Termination of Merger Agreement Published: April 16, 2020 at 5:15 p.m. Stein Mart merger called off Apr. Find 4 listings related to Stein Mart in Southfield on YP.com. Kingswood, in January, had offered 90 cents per share to acquire the company, but the …

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stein mart merger

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