Fitness financials: Bally noteholders back Harbinger restructuring plan, terminates interim executives, plus Payless/Stride Rite, Everlast, GSI Commerce

Fitness financials: Bally noteholders back Harbinger restructuring plan, terminates interim executives. Payless ShoeSource closes acquisition of Stride Rite. Everlast files proxy, schedules special shareholder meeting. GSI to buy Accretive Commerce for $97.5 million.
Author:
Updated:
Original:

Bally noteholders back Harbinger restructuring plan, terminates interim executives
Bally Total Fitness (Pink Sheets: BFTH) said a majority of its senior and subordinated noteholders agreed to support a restructuring plan from Harbinger Capital Partners Master Fund I Ltd. and Harbinger Capital Partners Special Situations Fund L.P.

Bally said Harbinger will invest $233.6 million in the reorganized company in exchange for 100 percent of its common equity.

Subordinated noteholders would receive an immediate cash payment of $123.5 million, with the remaining balance to be satisfied through the issuance of about $200 million in new subordinated notes of a reorganized Bally, it added.

In other company news: Bally said in a regulatory filing that it terminated the interim executive services agreements with Tatum LLC. Accordingly, services of interim Chief Financial Officer Ronald Eidell and interim Corporate Controller Michael Goldberg have been terminated effective Aug. 15.

Bally said the terminations were due its inability to negotiate the retention of Tatum, Eidell and Goldberg on terms satisfactory to the U.S. trustee appointed by a bankruptcy court.

Payless ShoeSource closes acquisition of Stride Rite
Payless ShoeSource (NYSE: PSS) said it has completed its acquisition of competing shoe store chain owner The Stride Rite for about $800 million. Among the brands in Stride Rite's portfolio are Saucony and Hind.

More than 80 percent of Stride Rite shareholders approved the transaction during a special meeting on Aug. 16, the company said. Besides paying $20.50 per share, Payless also is taking on some Stride Rite debt, pushing the deal value to around $900 million.

As previously announced, Payless also said it was changing its corporate name to Collective Brands, a holding company that will operate the Payless and Stride Rite chains under their own names, as well as Collective Licensing International, a brand development and licensing company.

Everlast files proxy, schedules special shareholder meeting
Everlast Worldwide (Nasdaq: EVST) said it has filed with the Securities and Exchange Commission definitive proxy materials in connection with the company's pending merger with Brands Holdings Limited.

Under the terms of the amended merger agreement with Brands Holdings, Brands Holdings will acquire all of the outstanding shares of Everlast Worldwide common stock for $33 per share in cash.

A special meeting of the company's shareholders, to consider and vote upon the proposed merger, has been scheduled for Sept. 19, 2007, at the Millennium Broadway Hotel in New York City. Shareholders of record as of July 26, 2007, will be entitled to vote at the special meeting. The company's board of directors has unanimously approved the Brands Holdings transaction and is recommending that the shareholders vote for the merger.

GSI to buy Accretive Commerce for $97.5 million
GSI Commerce (Nasdaq: GSIC), an e-commerce website operator, has agreed to acquire Accretive Commerce, a provider of e-commerce services, for $97.5 million in cash. GSI said the acquisition will expand its partner base and add to its infrastructure.

GSI expects integration-related operating expenses of about $10 million to $12 million and capital expenditures of $10 million to $15 million related to the acquisition, taken in the third quarter of fiscal 2007 through the end of fiscal 2008, mainly for systems migration activities. The acquisition is expected to close within 60 days.

For more information about any public company on this page or its financial reports, as well as to view stock prices updated every 15 minutes, visit the SNEWS® Stock Market Updates. Click on: www.snewsnet.com/cgi-bin/snews/stock_report.html.

Related

Fitness financials: Bally commences solicitation for pre-packaged Ch. 11 plan, files delayed 2006 10-K; plus Everlast, Nike, Stride Rite, Puma, GSI Commerce, Finish Line

Bally commences solicitation of approvals for pre-packaged Ch. 11 plan, reports results of delayed 2006 10-K On June 27, Bally Total Fitness (Pink Sheets: BFTH) said it has started the formal process of soliciting approvals for a prepackaged Chapter 11 plan of reorganization from ...read more

Outdoor financials: Delayed filing puts Deckers in jeopardy of Nasdaq de-listing, plus Eddie Bauer, Gander Mountain, Payless/Stride Rite, Cabela's, Wellman, GSI Commerce

Delayed filing puts Deckers in jeopardy of Nasdaq de-listingThe Nasdaq Stock Market sent Deckers Outdoor (Nasdaq: DECK) a letter saying the company is not in compliance with the SEC filing requirements for continued listing on the Nasdaq Global Select Market due to the delayed ...read more

Outdoor financials: Timberland Q1 profit falls 65 percent, plus Stride Rite, West Marine, GSI Commerce

Timberland Q1 profit falls 65 percentFirst-quarter profit for Timberland Co. (NYSE: TBL) fell 65 percent, hurt by restructuring costs and weaker sales of boots and kids' footwear. Quarterly earnings dropped to $9.3 million, or $0.15 per share, from $26.1 million, or $0.40 per ...read more

Fitness financials: Forzani Group denies rumors about takeover, plus Everlast, Payless/Stride Rite, Foot Locker, Big 5, Costco

Forzani Group denies rumors about takeoverForzani Group Ltd. (FGL.TO), Canada's largest retailer of sporting goods, said it was not in talks with any party about a takeover, though it receives inquiries about acquisitions from time to time. Forzani said it has received such ...read more

Outdoor financials: Luxottica to buy Oakley for $2.1 billion, plus Phoenix Footwear, Liz Claiborne, Payless/Stride Rite, Big 5, Liberty Media

Luxottica to buy Oakley for $2.1 billionLuxottica Group plans to acquire Oakley (NYSE: OO) for $2.1 billion, or $29.30 a share, in cash. Oakley's board said it will recommend the offer to shareholders for approval. The deal is expected to close in the second half of this year, ...read more

Fitness financials: Stride Rite to purchase Saucony, plus Big 5, Everlast, Finish Line, Costco, Wal-Mart

Stride Rite to purchase SauconyHind's parent Saucony (NasdaqNM: SCNYA and SCNYB) has been picked up by Stride Rite Corp. for $170 million -- about $23 a share. Taking into account cash reserves at Saucony, Stride Rite said the deal would cost it about $140 million. Stride Rite is ...read more

Fitness financials: Town Sports downgraded on expense concerns, plus Big 5, Payless/Stride Rite, Iconix, Under Armour

Town Sports downgraded on expense concernsA Credit Suisse analyst downgraded shares of Town Sports International (Nasdaq: CLUB), saying the company's stock is priced right and its second-quarter results could disappoint investors. Paul Lejuez lowered his rating to "Neutral" from ...read more

Fitness financials: Bally noteholders agree to Ch. 11 reorganization plan, plus Cybex, Brunswick, Life Time Fitness, Accell Group, Everlast, GSI Commerce, Crocs

Bally noteholders agree to Ch. 11 reorganization planBally Total Fitness (Pink Sheets: BFTH) said it has received the required number of votes in favor of its Chapter 11 reorganization plan and will file a voluntary petition for a "prepackaged" reorganization under Chapter 11 of ...read more

Fitness financials: Bally noteholders agree to Ch. 11 restructuring plan, plus Everlast, Iconix/Danskin Fitness, Nike

Bally noteholders agree to Ch. 11 restructuring planMajority noteholders of Bally Total Fitness' (Pink Sheets: BFTH) 10-1/2 percent Senior Notes due 2011 and more than 80 percent of its 9-7/8 percent Senior Subordinated Notes due 2007 have entered into a Restructuring Support ...read more