Pacific Sunwear Rebuffs Takeover
A small Florida company that has been mounting a campaign to take control of surfwear retailer Pacific Sunwear of California Inc. has been thwarted again.
Athletic wear retailer Adrenalina in Miami has been stalking PacSun since late last year. Most recently, Adrenalina’s chief executive, Ilia Lekach, nominated four directors to PacSun’s board and called for the resignation of PacSun Chief Executive Officer Sally Frame-Kasaks.
In a letter to Adrenalina, PacSun’s lead director, Peter Starrett, criticized the Miami-based company’s actions, saying the California retailer is not interested in “a business combination with Adrenalina.”
The letter said PacSun currently is focused on closing underperforming stores and lowering inventories.
In October, Adrenalina made an offer of $4.50 a share for Anaheim, Calif.–based Pacific Sunwear when it was trading at about $3.55 a share. It then upped the offer to $5 a share but was rejected.
Most recently, PacSun has been trading at around $1.50 a share. —Deborah Belgum
