The Roots Corp. Board of Directors has commenced a review of strategic alternatives to identify opportunities to maximize value for all shareholders. The company stated that during the review, the Board will “analyze and evaluate a range of alternatives, including, but not limited to, a sale of the company.”
The Toronto, Canada-based active lifestyle apparel retailer reported that it decided to publicly announce the review “as part of its value-maximization strategy while continuing to execute its current business plan.” The company does not intend to disclose developments regarding the strategic review “unless and until the board approves a specific transaction or otherwise determines that disclosure is appropriate or required by law.”
As the review proceeds, the Roots management team will continue to act in the best interest of the company and to execute on its key objectives. “Roots remains unwavering in its commitment to its customers, partners, and employees in its ongoing operations as the strategic review proceeds,” stated the company in a media release.
Roots Corp. has engaged J.P. Morgan Securities Canada, Inc. as its financial advisor and Torys LLP as its legal advisor for the strategic review.
Roots cautioned that “engaging financial and legal advisors should not be viewed as an indication that any specific process or transaction will be pursued. There can be no assurances that the strategic review will result in any specific action, transaction or agreement, or if a transaction is undertaken, as to its timing, completion or terms.”
Roots operates over 100 corporate retail stores in Canada, two stores in the United States, and an e-commerce platform, roots.com. It also has over 100 partner-operated stores in Asia and operates a dedicated Roots-branded storefront on Tmall.com in China.
Image courtesy Roots
