Skip to content Skip to navigation

Canadian retailer West 49 rejects Adrenalina bid

Print Friendly and PDF
  • Canadian retailer West 49

West 49, a major action sports retailer in Canada, today rejected an unsolicited takeover bid from Adrenalina.

Adrenalina storefrontAdrenalina, which previously sought unsuccessfully to acquire major U.S. action sports retailer Pacific Sunwear, tendered the unsolicted offer yesterday, according to news reports.

Adrenalina's offer valued West 49 at 55 cents (Canadian) per share - or $35 million.

West 49's Q4 08 results, the most recent available, showed sales of $62.4 million, a slight increase from the prior-year Q4. Same store sales dropped by -4.5 percent for the company and by -2.4 percent for the West 49 banner stores.

The Burlington, Ontario retailer operates 134 stores in nine Canadian provinces and two e-commerce sites. It bills itself as Canada's leading action sports retailer, and in addition to West 49 operates Off The Wall, Amnesia/Arsenic, D-Tox, and Duke's Northshore stores.

Its west49.com site focuses on skate and music, and offerings include D.C. shoes, Quiksilver, Hurley, Circa, Osiris, Vans, Billabong, Element, Globe, Fox and dozens of other large and small action sports brands from around the world.

In rejecting Adrenalina's offer, the West 49 board in a release said it did not believe the offer was in the best interests of the company or its shareholders best interest and cited many of the same reasons as PacSun's board:

"The board of directors noted that Adrenalina is an unlisted U.S. public company that has recently indicated that it does not have the financial resources to file its legally required annual report," West 49's statement said. "(It) has an unproven business model and operates a very small number of highly expensive retail stores in the U.S., and has recently made a similar and unsuccessful unsolicited attempt to acquire Pacific Sunwear of California, Inc."

Here's a link to a story today in the online Canada Press about West 49's response.

And here is a link to a story today in the Toronto Globe and Mail about Adrenalina's offer.

OUR SPONSORS

OUR SPONSORS

More news

Last updated: : 11/22/2017 - 10:29

Why apparel is having "a very exciting moment," according to Urban Outfitters executives

Last updated: : 11/21/2017 - 13:04

CEO Neil Fiske discussed developments at Billabong, RVCA and Element at Billabong's Annual General Meeting and why the company thinks its strategies are working

Last updated: : 11/20/2017 - 09:21

How Vans, Adidas and Converse performed at Foot Locker, plus the many ways Nike and Foot Locker are moving closer together

Last updated: : 11/17/2017 - 11:17

We have details about the Q3 results for industry nemesis Hollister

Last updated: : 11/16/2017 - 11:59

Compared to many competitors, Rip Curl reported solid financial results for the year ended June 30

Last updated: : 11/15/2017 - 09:37

Hurley has opened a 4,000-square-foot store at Pacific City on Pacific Coast Highway

Last updated: : 11/14/2017 - 13:54

The industry customer warned Wall Street Tuesday that earnings would be dramatically lower in 2018 as Dick's makes moves to win the sporting goods retail battle. Plus, the sobering outlook for the retail landscape in Q4.

Last updated: : 11/13/2017 - 09:12

While Mervin has a lot happening in its core snow business, two of the company's most newsy developments are happening in surfboards. We talk to the leadership team about its growing surf business, and about snow strategies.

Last updated: : 11/13/2017 - 08:26

The longtime Sales Director of Core Apparel is no longer with Vans, and he says he did not resign.

Last updated: : 11/10/2017 - 12:24

Many successful industry executives started their careers with Steve O'Connell at Clairemont. We explore how the shop has thrived for more than 40 years and how he attracted great talent to work the retail floor.