MARKET VIEWS THE NEWS BELOW AS POSITIVE!
November 2, 8:33 am Eastern Time
Company Press Release
SOURCE: Venator Group, Inc. and Claire's Stores, Inc.
Venator Group to Sell its Afterthoughts Accessory Chain to Claire's Stores for $250 Million
NEW YORK, Nov. 2 /PRNewswire/ -- Venator Group, Inc. (NYSE: Z - news), the New York-based specialty retailer, and Claire's Stores, Inc. (NYSE: CLE - news), the Florida-based teens' fashion accessories and apparel retailer, today announced that they have signed a definitive agreement pursuant to which Claire's Stores will acquire the assets of Afterthoughts, Venator Group's 768 store fashion accessory chain. In connection with the transaction, Venator Group expects to receive proceeds of approximately $250 million and to record an after-tax gain on sale as continuing operations of approximately $87 million, or $0.64 per share. The transaction is expected to be completed by early December, subject to customary closing conditions and required regulatory approval.
''We are extremely pleased with the success achieved during the past four years by Afterthoughts which has fast become a favorite mall destination among today's teens,'' stated Dale W. Hilpert, Venator Group's President and Chief Executive Officer. ''We thank Afterthoughts' management team for their hard work and dedication and wish them much success going forward.''
Afterthoughts, with its 768 stores in North America, provide today's trend-conscious teens with the latest in fashion accessories. In 1998, the division generated sales of approximately $194.6 million and operating income of $10.2 million. For the most recent six months ended July 31, 1999, Afterthoughts generated operating profits of approximately $9.8 million on sales of $102.1 million.
''As we near the completion of our repositioning strategy that began in 1995, the sale of Afterthoughts will provide us with financial flexibility to help achieve and sustain our financial goals, including having a balance sheet that reflects significantly less debt by the end of 2000,'' continued Mr. Hilpert. '' We intend to become an even more narrowly focused company in order to capitalize on our core strength - that being the world's largest athletic footwear and apparel retailer.''
Claire's Stores, Inc., specializing in teens' fashion accessories and apparel, currently operates more than 2,200 stores in the United States, the Caribbean, Canada, Japan, the United Kingdom, Switzerland, Austria and Germany.
Venator Group is a diversified global retailer that operates nearly 6,000 retail stores in 15 countries in North America, Europe, Australia and Asia. Through its athletic group of specialty retail stores, including Foot Locker, Lady Foot Locker, Kids Foot Locker and Champs Sports, as well as its Internet/direct marketer eVenator/Eastbay, the Company is the leading provider of athletic footwear and apparel. Other specialty retail chains include the Northern Group of apparel stores.
Disclosure Regarding Forward-Looking Statements
This press release contains forward-looking statements, which reflect management's current views of future events and financial performance. These forward-looking statements are based on many assumptions and factors including the effects of currency fluctuations, consumer preferences, economic conditions world-wide and other factors detailed in the Company's filings with the Securities and Exchange Commission. Any changes in such assumptions or factors could produce significantly different results.
SOURCE: Venator Group, Inc. and Claire's Stores, Inc. |
