Canadian Outdoors Retailer Eyes Possible Sale

Roots Corp. (Toronto) said its board has launched a review of strategic alternatives to identify opportunities to maximize value for all shareholders. During that process, the board will analyze and evaluate a range possibilities, including, but not limited to, a sale of the company, the outdoors retailer said in a news release.

“The company has decided to publicly announce this strategic review as part of its value-maximization strategy while continuing to execute its current business plan,” that statement said. “The company does not intend to disclose developments with respect to the review unless and until the board has approved a specific transaction or otherwise determines that disclosure is appropriate or required by law.”

In its most recently reported quarter, ended Nov. 1 of last year, the retailer reported sales of $71.5 million, up 6.8% from the same period a year earlier, and net income of $2.3 million, a drop of 4.5%.

Operating under the slogan “At Home with Nature,” Roots sells apparel, leather goods, footwear and accessories. Founded in 1973, the chain operates 100-plus stores in its home country and two in the U.S. (in Birmingham, Mich., and Park City, Utah), along with about 100 partner-operated stores in international markets.