|
Lands' End up on report
|
 |
May 18, 2001: 12:13 p.m. ET
CEO Comer looking to sell catalog retailer, but so far no takers found
|
NEW YORK (CNNfn) - Shares of catalog retailer Lands' End Inc. jumped more than 5 percent in trading Friday following a published report that said the company is up for sale.
Chairman Gary Comer, 73, is ready to step down after nearly 40 years at the helm of the popular catalog retailer, BusinessWeek magazine reported in its online edition Friday, citing sources close to the situation.
Potential buyers have included Sears Roebuck & Co. (S: down $0.41 to $39.68, Research, Estimates), Wal-Mart Stores Inc. (WMT: up $0.01 to $51.77, Research, Estimates), and May Department Stores Inc. (MAY: down $0.68 to $34.88, Research, Estimates), all of which have already said no, the magazine reported.
Dodgeville, Wis.-based Lands' End (LE: up $2.20 to $36.85, Research, Estimates), which boosted catalog sales in the last quarter, has been one of the few companies able to turn a strong profit over the Internet as well, thanks mainly to its established customer base and cost-efficient infrastructure.
Though many companies have considered Lands' End, just why no one has made an offer is not immediately clear. One reason may be Comer's asking price, $50-to-$70 a share, a significant premium over the company's stock, which currently trades at about $35 a share, the magazine said. Another reason may be worries over the future of Internet sales in the wake of the recent dot.com shakeout. 
|
|
|
|
|
 |
|
