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: : 02/25/2018 - 15:52

Mandy, considered by many to be one of the most talented design leaders in the industry, told her staff at Amuse Friday afternoon

Last updated: : 02/22/2018 - 19:45

Details about Billabong's half-year results around the world, including how the Billabong, RVCA and Element brands performed in each region

Last updated: : 02/22/2018 - 14:34

We unpack the results of Volcom's #ThisFirst campaign with Ryan Immegart, including what they learned trying to target new audiences, and marketing stratetgy changes they are making overall given the rapidly evolving landscape

Last updated: : 02/21/2018 - 09:42

Hurley is finally putting more resources into its women's business, and has relaunched the line with a new strategy and new modern aesthetic

Last updated: : 02/20/2018 - 08:34

A talk with Kent Untermann, the owner of the high-volume footwear account Island Sole, about the changing retail landscape and the particular challenges of retail in Hawaii

Last updated: : 02/16/2018 - 09:14

It’s hard to believe that Vans' results could keep getting better, but that’s exactly what happened - we have all the details on their global and regional numbers

Last updated: : 02/15/2018 - 11:14

We asked Global Director of Marketing Danielle McKenzie about the strategy behind the new marketing push and how it will be executed

Last updated: : 02/14/2018 - 15:50

Billabong reveals why staying independent is riskier than selling to Boardriders, including details about larger market conditions and Billabong's own internal challenges

Last updated: : 02/13/2018 - 13:10

A look at Volcom's top and bottom line as parent company Kering looks to sell the brand to focus on its luxury business

Last updated: : 02/12/2018 - 10:06

Friends and colleagues remember Boardriders CEO Pierre Agnes