Home & Textiles Today Staff -- Home Textiles Today, July 7, 2008
Pier 1 Ends Quest for Cost Plus
Saying "it is unlikely that we would be able to acquire a majority interest in Cost Plus at a price that would make sense for our shareholders," $1.5 billion specialty retailer Pier 1 Imports dropped its stock-for-stock proposal. Pier 1 made its offer public on June 9. The Cost Plus board of directors rejected the bid, and the Pier 1 plan suffered a setback when its stock plunged 20% on June 19, the day it announced its first-quarter results.
Cost Plus Renews Stock Shield
In the wake of the failed takeover bid by Pier 1, the board of directors of Cost Plus renewed its preferred shares rights agreement through June 2013. The 295-store specialty retailer said the plan is "an effective means to guard against the potential use of coercive takeover tactics, including the accumulation of shares in the open market or through private transactions, and to prevent an acquirer from gaining control of Cost Plus without offering a fair and adequate price and terms to all of Cost Plus' shareholders."
Duckwall Hires Former Meijer Head
Rural general merchandiser Duckwall-ALCO Stores has named former Meijer president Lawrence Zigerelli its new president and ceo. Prior to his work with Meijer, a pioneer of the supercenter retail concept, Zigerelli served stints at Procter & Gamble and CVS. He has a total of 27 years of domestic and international experience with leading retail and consumer product companies. Duckwall-ALCO chairman Royce Winsten on July 2 noted that, "underscoring his commitment to the company," Zigerelli is also investing his own capital to purchase company shares at yesterday's market price."
With the move, cfo Donny Johnson continues as Duckwall-ALCO evp and cfo; he had served as interim ceo for the last several months.
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