Skip to content, or skip to search.

J.Crew’s Angry Shareholders Are No Longer Happy With Their Settlement

J.Crew reached a settlement with shareholders who sued the company after it announced plans to sell itself to a private equity firm for $3 billion. Under the settlement, J.Crew agreed to extend the go-shop period to February 15 to solicit rival bids that shareholders could vote on. However, a lawyer for the shareholders now argues that J.Crew manipulated the process by scheduling a vote on the bid for March 1 and announcing the results of the initial go-shop period, during which no other bidders emerged. Under terms of the agreement — which J.Crew calls "binding," and the opposition to which it plans to fight — they also agreed to pay the shareholders $10 million. So what could appease them now? "A very significant monetary recovery," their lawyer reveals. J.Crew says they've done nothing wrong and plan to go ahead with the March 1 vote on the sale. The case is in the hands of a judge.

Settlement Over J. Crew Deal Falls Apart [Dealbook/NYT]
Shareholders Back Out of J. Crew Settlement [WWD]

Photo: Konstantin Sergeyev

Copyright © 2013, New York Media LLC. All Rights Reserved. The Cut® are registered trademarks of New York Media LLC.

Copyright © 2013, New York Media LLC.
All Rights Reserved.

Copyright © 2013, New York Media LLC. All Rights Reserved.

Connections

Critics’ Pick
Show More
Label
Season
Model:
% Agree

Sponsored Message

More Celebrity Lookbooks

Close

    Sponsored Message Continue