Sponsors
Billabong ▼ -0.010 | PPR ▼ -2.20 | American Apparel ▼ -0.020 | The Buckle ▼ -0.85 | Columbia ▼ -1.34 | Deckers Outdoor ▲ +1.09 | Dicks ▼ -0.65 | Foot Locker ▼ -0.56 | Genesco ▼ -0.67 | Iconix Brand Group ▼ -1.22 | Jarden Corp ▲ +0.01 | Nordstrom ▲ +0.11 | Luxottica ▼ -0.58 | Nike ▼ -0.16 | Pacific Sunwear ▲ +0.07 | Skullcandy ▼ -0.12 | Sport Chalet - 0 | Urban Outfitters ▼ -0.44 | VF Corp ▲ +0.13 | Quiksilver ▼ -0.01 | Zumiez ▼ -0.33 | Macys ▼ -0.46 | Tillys ▼ -0.14 |
Readers Say
In touch with our business
In touch with our business

If you're not plugged into Shop-Eat-Surf.com daily, you're out of touch with our business!

- By Peter "PT" Townend, The ActivEmpire
The one, undisputed leader
The one, undisputed leader

It is common knowledge in our industry that there is one undisputed leader in reporting on the topics, businesses and trends that impact all of us the most, and it is shop-eat-surf.com. Their access to those who make our industry happen is second to none, and we value not only the content of their reporting but the editorial thought on what it all means both in the present as well as the future. If we were asked to give a rating, it would be five out of five stars.

- By Craig Levra, CEO, Sport Chalet
Industry Insight

CFA, WELLS FARGO: Invitation to next "Crystal Ball" breakfast session, "Private Label vs Branded Manufacturing."

STOKES ME: SIMA Humanitarian Fund campaign kicks off this week with "Add-A-Buck" promotions in 76 core-store doors.

Details on Industry Insight.


Tiffany Montgomery
Print This Article

The challenges facing the Adrenalina bid

By Tiffany Montgomery
October 20, 2008 9:25 AM

I've talked to several financial folks this morning to see if they think the bid by Adrenalina for PacSun is possible.


I'll summarize what they said the challenges are:


Financing: At a time when credit conditions may be the tightest they have ever been, it will likely be difficult for Adrenalina to raise the $250 million to $300 million needed to purchase PacSun, analysts say.


Size: Adrenalina is small compared to PacSun. The company currently operates three stores. PacSun operates 938.


During the fiscal year ended December 31, 2007, Adrenalina had revenues of $3.3 million and incurred a net loss of $5.8 million. PacSun had $1.4 billion in net sales and net income of $39.6 million.


Valuation: Though the $4.50 offer is above PacSun's trading price of $3.78 this morning, analysts said it doesn't take into account the value of PacSun's large stores base and retail infrastructure.


Bloomberg quoted an analyst along those lines. From the Bloomberg story:


"Amy Noblin, an analyst at Pali Research, was skeptical.

 

"We think this particular deal is unlikely to happen given the low price,' she wrote in a research note Monday. Pacific Sunwear's value is closer to $10 a share," she said.

 


More on: PacSun, bid, Adrenalina

Articles You Might Have Missed