Indigo receives privatization offer from Gerald Schwartz

Indigo Books & Music Inc. says it has obtained a proposal to take the retailer non-public from a pair of firms owned by controlling shareholder Gerald Schwartz.

The non-binding proposal from Trilogy Retail Holdings Inc. and Trilogy Investments L.P. would see them buy the issued and excellent shares of Indigo it doesn’t already personal for $2.25 in money per frequent share. 

The two Trilogy corporations are private holding firms of Schwartz, the Onex Corp. founder and chairman who sits on Indigo’s board of administrators and is the partner of Indigo chief govt Heather Reisman. 

Through the Trilogy corporations, Schwartz is the controlling shareholder of Indigo. He owns round 56 per cent of the corporate’s issued and excellent frequent shares, whereas one other 4.6 per cent belong to Reisman by a special holding firm.  

Trilogy says the supply represents a 50 per cent premium over Indigo’s closing value on the final day of January. 

It says it’s not taken with promoting any of its shares. 

Indigo introduced layoffs earlier this yr as a part of the retailer’s ongoing efforts to streamline its operations. 

Indigo spokeswoman Melissa Perri stated on the time that the cuts have been a part of the corporate’s strategic plan meant to return the business to profitability.

The firm has seen a number of quarters of monetary losses in addition to a variety of adjustments to its govt and board of administrators during the last yr. 

Most lately, the corporate reported a internet lack of $22.4 million in its second quarter, a interval when founder and chief govt Heather Reisman retired and turned the business over to Peter Ruis.

Ruis left the corporate abruptly in September, making manner for Reisman to return. 

Shares in Indigo closed Thursday down 1.33 per cent at $1.48. The inventory value’s 52-week excessive was $2.60 on Oct. 4.

The retailer will report its monetary outcomes for the quarter ended Dec. 31, 2023 within the coming weeks, however has not but set a date for his or her launch.