New Jersey discount retailer Syms may sell

TRD New York /
May.May 27, 2011 09:02 AM

New Jersey-based discount retailer Syms Corp. is considering selling the company and other strategic alternatives, it was revealed yesterday. The announcement sent share prices up nearly 26 percent in afternoon trading, the most in almost two and a half years.

The retailer has been troubled financially since its purchase of Filene’s Basement out of bankruptcy protection for $62.4 million in 2009. It reported net losses of $32.9 million for the fiscal year ending February 2011 and a bigger loss, earlier this month, as its revenue fell 13 percent to $100.9 million.

Capstone Equities Capital Management valued Syms’ real estate holdings at over $200 million. That’s about 50 percent more than the company’s worth as a retailer. It owns 18 of its 49 stores for a total of 1.69 million square feet, according to a public filing dated Feb. 26.

The company has hired Rothschild Inc. as an adviser and is currently exploring alternatives to the sale. The company has around 2,500 employees. [Crain’s]


Related Articles

arrow_forward_ios
Capstone and Highgate score $130M loan to buy W hotel

Capstone and Highgate score $130M loan to buy W hotel

Capstone in contract on W Hotel for $190M

Capstone in contract on W Hotel for $190M

Capstone and HEI are in talks to buy W Hotel for $209M

Capstone and HEI are in talks to buy W Hotel for $209M

Capstone, Highgate buy the Nyma hotel

Capstone, Highgate buy the Nyma hotel

Developers downsize plans for 42 Trinity Place

Developers downsize plans for 42 Trinity Place

Capstone exec buys Lenox Hill co-op for $12M

Capstone exec buys Lenox Hill co-op for $12M

Former Playboy Club building to undergo retail makeover

Former Playboy Club building to undergo retail makeover

GreenOak, Capstone buy former Playboy Club for $85M

GreenOak, Capstone buy former Playboy Club for $85M

arrow_forward_ios
Loading...