Strouds finds buyer
Staff -- Home Textiles Today, 3/26/2001 12:00:00 AM
CITY OF INDUSTRY, CA -Strouds has found a buyer. A southern California investment firm has signed a letter of intent to purchase 50 stores, two distribution centers, the corporate headquarters and additional assets, including all trade names, trademarks, copyrights and the company's website for approximately $39.5 million. The deal is subject to bankruptcy court approval.
The acquiring entity will comprise the southern California investment firm and current senior officers of Strouds Inc., which includes Gary Van Wagner, cfo, and Robert Valone, gmm. The name of the investment firm had not been released as of press time.
Supported by Strouds' unsecured creditors' committee and its board of directors, the sale is subject to completion of due diligence, execution of a formal agreement and appropriate approvals. It's scheduled to be completed in late April.
"The company is especially pleased with the proposed sale, and Gary's and Rob's continuing participation will provide not only continuity for our organization but also will help continue and strengthen the Strouds brand that remains a significant force in the marketplace," said Thomas Paccioretti, Strouds president and ceo. "Management believes that with greater financial resources afforded by new ownership, Strouds will be able to re-establish itself as a leader in the industry."
Substantially all of management is expected to remain with the new company, and the existing headquarters and distribution facilities here will remain operational.
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