Dabah will sell shares, resign from board
| Tweet |
Children's Place Retail Stores’ former chief executive abandoned his proxy fight two days before a stockholder vote, agreeing to sell half of his shares to the company. The Secaucus, N.J.-based company says it will acquire some 2.45 million shares, or half of the about 4.9 million shares owned by Ezra Dabah, who together with family trusts, owns about 16.6 percent of outstanding common shares in the children's retailer.
As part of the deal, Dabah also agreed to withdraw his slate of nominees to the board and Dabah and his father-in-law, Stanley Silverstein, will resign from the company's board on the closing of the repurchase, expected on or about August 3.
Children's Place, which operates about 900 stores in the U.S., says it will fund the purchase with $75 million in cash repatriated from company subsidiaries in Hong Kong and Canada.
In May, Dabah named three nominees for election to the board while envisioning turning the company into a big-box retailer selling children’s furniture and accessories. He left his post as chief executive in September 2007 and tried unsuccessfully to buy the company in 2008.
Did you enjoy this article? Click here to subscribe to the magazine.
