Private-equity
firms as well as other retailers are exploring purchasing all or part of Collective
Brands, the owner of Payless ShoeSource as well as footwear brands such as
Saucony, Sperry Top-Sider, Keds and Stride Rite, according to a report in the
New York Post. In August, Collective Brands said it had hired investment bank
Perella Weinberg to explore a possible sale.
Sources
told the Post that a deal is becoming more likely to happen since the company
on Nov. 21 posted a quarterly loss on sluggish sales at Payless, sending its
shares down 15 percent on that day. At Monday's close, the stock was valued at 878.3
million. Sources told the Post that the
company’s shoe brands alone could fetch as much as $1 billion.
Following the exit of
long-time chairman, president and CEO Matt Rubel in June, the company in August announced that its
board would, together with management, conduct a review of strategic and
financial alternatives to further enhance shareholder value. Working with its
advisors, Perella Weinberg Partners and Kurt Salmon, the company said it would
“explore a full range of alternatives for Collective Brands.”
The company continues its search for a new CEO.
