Heelys Inc. said its board had retained investment bank Houlihan Lokey as financial advisor to help it evaluate possible strategic alternatives to increase shareholder value.
In August, the company's board had rejected a $5.25 a share cash bid by rival Skechers USA Inc., saying the offer was premature and not reflective of the value of the company. Heelys' stock closed at $3.47 on Wednesday on Nasdaq.
In its statement Wednesday, Gary Martin, chairman of the board of Heelys, Inc., commented that “We believe that management is making progress on restoring the company's business to profitability. Further, our unique and patented footwear provides us a niche business that, in a difficult retail environment, is less susceptible to price competition. With that said, we also believe that we have an obligation to our shareholders to consider strategic alternatives that could enhance shareholder value. During this evaluation process, we will continue to remain focused on business as usual for all of our operations and on executing our business plan.”
The statement added that “there is no assurance that this process will result in any changes to the company's current business plans or lead to any specific action or transaction. While the process is underway, the company does not intend or expect to disclose any developments regarding the process until, if ever, a definitive agreement is entered into or the board determines to terminate or cease the process. Also, during the process, the company will not provide any new earnings guidance, nor will the company update or comment further upon the earnings guidance previously provided.”
