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Perry Ellis International's ousted chairman and founder offers to buy the company

The offer represents a18.6% premium to the stock’s closing price on Tuesday
Perry Ellis
Perry Ellis runway show during New York Fashion Week

The former chairman and founder of Perry Ellis International Inc (NASDAQ:PERY) has offered to buy the clothing company for US$430mln.

George Feldenkreis, who is the largest shareholder, offered US$27.50 per Perry Ellis share, representing a18.6% premium to the stock’s closing price on Tuesday.

Board too risk-adverse, has short-term goals

Feldenkreis plans to take the company private if the deal is approved.

He will use debt and equity to finance the deal, including a US$300mln commitment from Fortress Investment. 

"I am not comfortable with the motivations, strategy and oversight of the existing board and believe shareholder value will suffer under this board’s stewardship," Feldenkreis said in a letter to the company's board. 

Feldenkreis also said he believes the company is currently held back by short-term goals and that the board is too risk-adverse, meaning they are missing out on opportunities to improve shareholder value.

Feldenkreis is the founder of Perry Ellis and led the company for 50 years before he was ousted as executive chairman in September.

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