Eddie Bauer gets notice of stock delisting, court OKs 'first day motions'
Eddie Bauer (Nasdaq: EBHI), which filed for Chapter 11 bankruptcy protection, said it received notice from the Nasdaq Stock Market it will be delisted.
The stock will be suspended on June 26. At that time, unless appealed, Nasdaq will suspend the stock. Eddie Bauer has given no indication it plans to appeal.
Also, the U.S. Bankruptcy Court has OK'd the company's "First Day Motions" filed with the court, allowing it to continue normal operations such as paying employee wages and vendors to keep the company operating as it has been.
U.S. Bankruptcy Judge Mary Walrath of the District of Delaware also gave interim approval of $90 million in loans to fund operations during the bankruptcy procedure. Final approval is still needed for the debtor-in-possession financing.
At the time of its bankruptcy filing, Eddie Bauer said private equity firm CCMP Capital Advisors has bid $202 million in cash to buy the business. The court will ultimately conduct a bankruptcy auction in which other bidders can submit competing offers. CCMP has said it would keep open most of Eddie Bauer's 371 stores and retain the majority of the employees.
Garmin gets estimate boost from analyst
A Barclays Capital analyst raised his earnings estimates on Garmin (Nasdaq: GRMN), saying that stable inventory could lead to increased seasonal sales and average selling prices.
Analyst Amir Rozwadowski said in a client note that he thinks stabilized inventory levels have "enabled Garmin's sell-in to closely mirror sell-through during the quarter."
He now expects earnings of $2.06 per share for the year, compared to an earlier estimate of $1.95 per share. He also raised his 2010 earnings estimate to $1.80 per share from $1.75 per share. The analyst has an "equal weight" rating and $18 price target for Garmin shares.
On the news, Garmin's shares rose $0.81 to close at $22.27.
--Compiled by Wendy Geister
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