Hanover Direct, Inc. has received a proposal from its largest shareholder that would take the company private, the Weehawken, NJ-based Dmer announced yesterday.
The multichannel marketer sells home, apparel and gift items under brand names such as Domestications, The Company Store, Company Kids, Silhouettes, International Male and Scandia Down.
The proposal from Chelsey Direct LLC is for it to acquire the shares of common stock of Hanover that it does not already own for a cash purchase price of $1.25 per share. Chelsey currently maintains approximately 91 percent of the voting shares of the company through its various stock holdings.
In a letter dated Feb. 23, Chelsey indicates that it believes that Hanover should become privately owned due to the financial drain imposed by the company remaining public as well as the limited benefits to the company from maintaining that status.
Hanover’s Board of Directors has not yet reviewed this proposal.
As previously reported, Hanover was delisted by the American Stock Exchange in January 2005 because of its failure to report 2004 financial statements on time. It continued to have difficulty staying caught up with its filings over the course of the year.
On Feb. 21 of this year, Hanover announced the completion of its 2004 year-end audit and the release of its financial results for the third fiscal quarter of 2004, the 2004 fiscal year as well the first, second and third fiscal quarters of 2005. The company also reported that it had filed all its past due quarterly and annual reports with the Security and Exchange Commission for those periods.
Chantal Todé covers catalog and retail news and BTB marketing for DM News and DM News.com. To keep up with the latest developments in these areas, subscribe to our daily and weekly e-mail newsletters by visiting www.dmnews.com/newsletters