Execs Take Back Newport News
This follows last month's news that a $28.6 million bid by Pangea Holdings Ltd. was accepted for Newport News as part of the breakup of Spiegel.
Yesterday's announcement, issued by Newport News, said that NNHC acquired the direct marketer from Spiegel.
"Pangea, as a holding company, is not involved in the deal," Newport News spokeswoman Sonya Hartland said. "However, the three principals of Pangea are shareholders in Newport News Holdings Corp., which is a newly formed entity, along with senior management of Newport News and Golden Gate Capital, a private-equity investment firm that has $2.5 billion in capital."
Hartland confirmed that NNHC president/CEO Geralynn Madonna is among the new company's senior management shareholders. She would not identify other senior management shareholders from Newport News or say how many senior management officials are shareholders.
"Newport News Holdings Corp. is the new operating name for Newport News. Pangea was a holding corporation made up of the three people who are still involved," said Hartland, who confirmed that Christian Feuer is one of the three Pangea principals. Feuer is a former marketing executive at Spiegel Catalog.
Hartland could not say anything about the company's plans for the rest of the year.
"I can't speak to changes in the business model, but we're staying true to our brand," she said.
The company will remain headquartered in New York and operate a distribution facility in Newport News, VA.
Nothing was said about Pangea's acquisition of the Spiegel Catalog after last week's approval of the deal by a U.S. bankruptcy judge. The deal included $2 million in cash, $22 million worth of inventory commitments and $29.4 million in assumed liabilities.