DTLR Holding, Inc., formerly known as Downtown Locker Room, announced that due to an unspecified “business development,” it will not proceed with its planned initial public offering. The company declined to comment beyond its one-sentence statement.
In early November, the urban chain, based in Hanover, MD, revealed plans to sell up to $75 million in stock in an initial public offering. With recent investments in its management and infrastructure, the 97-unit chain had cited the potential to reach 250 to 300 stores.
On Dec. 2 in an updated filing with the Securities & Exchange Commission, DTLR set a projected price range for the sale of 5.8 million shares between $12 to $14. At the midpoint of that range, the company would have been valued at $214 million.
The updated filing also showed that preliminary sales for the thirteen weeks ended Nov. 2 were up 21.5 percent to $48.1 million. Comparable store sales jumped 16.8 percent following a decrease of 2.3 percent in the corresponding period in 2012 and were driven by a strong performance in both footwear and apparel. Income from operations in the period was expected to land between $2.7 million and $3.0 million, compared to income from operations of $500,000 a year ago.