Metropark Prepares to Go Public
Orv Madden’s latest project is ready to go public.
On June 13, Madden’s 4-year-old retail concept, Metropark USA Inc., registered with the Securities and Exchange Commission for an initial public offering (IPO) of its common stock.
The City of Industry, Calif.–based retailer plans to use the proceeds from the IPO to repay debt and fund new store openings. A representative for the company declined to state the expected size or price of the IPO.
According to the company’s filings, Metropark will open 25 stores in the remainder of its fiscal 2008. From fiscal 2009 on, it will open 25 to 30 new stores annually. There will be a potential store fleet of 300 locations for the mall-based retailer. Metropark currently runs 43 stores in 17 states. In fiscal 2007, it claimed $804 in sales per square foot in its stores. In fiscal 2007, net sales were $71.6 million, compared with 2005, its first full year of net sales, which were $11.5 million.
The filing described Metropark as a company that mixed the merchandising approach of a boutique with the ambiance of a nightclub. Disc jockeys frequently entertain shoppers as they browse through the store’s selection of fashion labels such as Obey Clothing, Hause of Howe, English Laundry, LRG and True Religion. Its primary demographic is men and women aged 20 to 35, a group that the retailer’s filing claimed has been ignored by mall-based retailers.
Despite the current weak economy, retail analyst Jeffrey Van Sinderen forecasted the IPO would be received well. “They’ll get a good valuation for it. People look at it as a growth story with a lot of units,” said Van Sinderen, who works for B. Riley & Associates in Los Angeles.
Investment bank Goldman Sachs & Co. will serve as the IPO’s lead underwriter. Metropark plans to list its shares on the NASDAQ Global Market under the symbol “MTPK.” Madden’s previous company, mall retailer Hot Topic, which Madden founded in 1989, went public in 1996. —Andrew Asch
