Mergers & Acquisitions

LuxeYard, the boutique luxury flash-sale site, announced that it signed an agreement to acquire LeatherGroups.com, the online division of Solana Beach, Calif.-based furniture retailer homeLOFT. Terms of the deal weren't disclosed. The transaction was led by LuxeYard CEO Braden Richter and coincides with the creation of an acquisitions team, which will be based in LuxeYard's New York office. The company is actively pursuing several other acquisitions as part of its effort to consolidate the flash-sale category and to reinvent the future of social and mobile e-commerce with its concierge buying and group buy technologies.

Barneys New York announced that it's reached an agreement with the company's largest lender, Perry Capital, its sponsor, Istithmar World, and certain of its other lenders to significantly reduce the company's debt and improve its capital structure. The transaction provides Barneys with significant financial flexibility to prioritize its investment in its operations and grow the business. As part of the agreement, Perry Capital and The Yucaipa Companies have partnered to convert debt for equity in order to reduce Barneys' long-term debt from $590 million to $50 million. As a result, Perry Capital has become the majority owner of Barneys.

Talbots said it's received a raised takeover offer of $214.6 million from private equity firm Sycamore Partners. The company also said it entered an exclusivity agreement with Sycamore, which will end on May 15. Talbots said Sycamore had offered to pay $3.05 per share — slightly higher than the $3.00 per share offer it made in December. Talbots’ board of directors said it continues to evaluate strategic alternatives. Talbots' fourth-quarter loss widened to $53.2 million, or 77 cents per share, from last year’s loss from continuing operations of $2.8 million, or 4 cents per share.

Walgreens announced it's completed its acquisition of certain assets of BioScrip’s community specialty pharmacies and centralized specialty and mail-service pharmacy businesses. The transaction represents a total deal value of approximately $225 million. “We welcome the BioScrip leaders and employees to the Walgreens family,” stated Kermit Crawford, Walgreens president pharmacy, health and wellness. “BioScrip’s clinically focused community specialty pharmacies and access to additional limited distribution drug therapies, combined with Walgreens' existing nationwide network of retail and health system pharmacies, creates a strong network of support for our core drug store business to provide specialty pharmacy solutions to our patients."

Frederick's of Hollywood announced today that it's retained Allen & Company, a New York-based investment bank, to assist its board of directors in evaluating and exploring a broad range of strategic alternatives, including but not limited to a sale of the company or a business combination.

Wolverine Worldwide announced that it, along with Blum Capital Partners and Golden Gate Capital, has signed a definitive agreement to acquire Collective Brands. As part of the transaction, Wolverine will acquire Collective Brands’ Performance + Lifestyle Group, which consists of the Sperry Top-Sider, Saucony, Stride Rite and Keds brands. Adding these businesses to Wolverine's existing portfolio, which is led by Merrell, Hush Puppies, Wolverine, Sebago and Caterpillar Footwear, creates an even more powerful stable of lifestyle brands that positions the company for accelerated growth in both revenue and profits. 

Ascena Retail Group is buying Charming Shoppes, owner of Lane Bryant, for about $890 million, giving it access to the plus-size women’s clothing market. Charming Shoppes also runs Fashion Bug, Catherines Plus Sizes and the direct marketing business Figi’s. Ascena, owner of the dressbarn, maurices and Justice brands, will pay $7.35 for each Charming share. That's a 25 percent premium to Charming’s closing price of $5.90 Tuesday. Ascena’s cash tender offer should roll out within 10 business days.

Private equity firm The Gores Group may hit the brakes on its $15 a share buyout of Pep Boys, the nation's leading automotive aftermarket service and retail chain. In a regulatory filing released yesterday, Gores Group raised questions as to whether the "serious deterioration in Pep Boys business" since the company announced a late January buyout could precipitate a material adverse event, which would allow the buyer to cancel the deal. The notice sent Pep Boys’ shares sharply lower — down close to 25 percent — and at under $12, below the pre-buyout share price.  

Bonobos, a brand that sells men’s clothing online, has raised $16.4 million led by retail giant Nordstrom, with Accel Partners and Lightspeed Venture Partners participating. In addition to the funding, Nordstrom will now sell Bonobos clothing at a number of its stores and on Nordstrom.com. The deal with Nordstrom will be the first time the brand is available in-store and online outside Bonobos.com and the company’s New York City headquarters’ showroom store.

Bedding retailer Mattress Firm announced it's agreed to buy all the remaining equity interests of Mattress Giant in a deal valued at approximately $47 million. Mattress Firm, which bought 55 Mattress Giant stores last year, said the latest deal involves about 180 stores in Florida and Texas, its two largest markets. It will give the retailer more than 900 stores. With the newly acquired stores and about 100 new stores expected to open, Mattress Firm projects it will end its current fiscal year on Jan. 29, 2013, with more than 1,000 stores and revenues of just over $1 billion.