PacSun Answers Adrenalina’s Press Release and Offer Letter
ADMIN
- December 15 2008
- 476 views
- 6 comments
In response to a press release issued today by Adrenalina, Pacific Sunwear’s Sally Frame Kasaks released a statement outlining the reasons why she and the company’s board of directors do not think a business combination with Adrenalina would benefit PacSun and its shareholders. Some factors listed include Adrenalina’s loss of $6.2 million during the nine-month period ended September 30, 2008, as well as a statement pulled directly from Adrenalina’s 10-Q report filed November 10, 2008, which reads: “Currently we do not believe that the compnay will be able to generate any significant cash flow during the coming year to fund our planned expansion or to fund our current operations.”
Frame Kasaks concludes the letter by writing:
“You also state in your November 20 letter and in your press release that Adrenalina is now a shareholder of Pacific Sunwear, and that you intend to significantly increase your position. We welcome you as a shareholder, and as with all of our shareholders, we are appreciative of ideas to strengthen our business and enhance our operating results. We do not believe, however, that the interests of other Pacific Sunwear shareholders would be served by a business combination with Adrenalina.”
To read the entire letter, click HERE.
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December 15th, 2008 at 3:19 pm
Would these guys (adrenalina) just give up. I would admit that Pac Sun needs some help but I don’t see any value in a combination. Pac Sun however does need to create a more unique selling proposition within its business. They really offer no unique value with their current private label brands as they have no following or authenticity (decent price points though which might behoove them in this climate). Their branded products can be found at any other outlet in the mall and within the specialty network so in the end they offer nothing of differentiated value to the consumer (I know they ask for pac sun specific merchandise but a lot of times it is worse then the regular line and more logo focused). I think they need to get some new leadership in there as do many of these large public companies. There needs to be some innovation in ideas vs. the cycling of the same ideas utilized at the last company they were at. In fact does anyone within Pac Sun actually surf? They are selling the southern california surf lifestyle but no one lives it? Confusing to say the least?
December 15th, 2008 at 5:15 pm
GOOG RIDDANCE TO THEM BOTH–SOONER THEY’RE GONE, THE BETTER–F&*^ING LEECHES.
December 15th, 2008 at 7:21 pm
I work at PacSun and I just surfed….so there is at least one
December 15th, 2008 at 11:35 pm
I don’t believe anyone at Pacificstreetwear surfs! No one did when I worked there! Do you mean you signed up for a surf lesson at a camp at Bolsa Chica where you got towed out, then pushed into a 1 ft mushball, stood up for a millisecond, and then yelled I’m surfing in california. Come on! .There is surfing then there’s pretending to surf. Nice try though.
December 16th, 2008 at 6:46 am
There is smart and there is pretending to be smart…Yawn. I don’t see how this would make dif. Surfing doesn’t help u sell flip flops and bikins, it all about numbers. Another thing is you will see Hurley & Volcom’s Am team budgets dry up if this company folds. I am sure they represent a 1/4 of their orders. Not to mention all the “surfers” who work at these companies will be look for their next break in the unemployment line. Hey I think this store is cheese but companies have gotten so intreched with them it will effect the whole industry. People are failing to see the big picture here.
December 16th, 2008 at 10:36 am
Actually I was surfing Rocky Lefts yesterday…stop hating. :p