The Perry Ellis Board of Directors has received an unsolicited proposal from a privately-held leather goods manufacturer to acquire 100 percent of the company's common stock, according to a release. The offer puts into question its founder's bid to regain control of the company.
Last month, Miami-based Perry Ellis International agreed to become a private company through a $437 million buy-out led by founder George Feldenkreis. Under the terms of the Feldenkreis merger, Perry Ellis shareholders will receive $27.50 per share in cash at closing. But under the new proposal, by Randa Accessories Leather Goods, a men's accessories company based in Illinois, shareholders would receive slightly more: $28 per share in cash.
Though Perry Ellis is still subject to the Feldenkreis merger agreement, that agreement has not yet closed. It was scheduled to close in the second half of 2018.
Perry Ellis said in a press release that the Special Committee of the Perry Ellis Board will review Randa's proposal to determine its course of action.
Feldenkreis, who founded Perry Ellis 51 years ago as a Cuban refugee, was ousted as executive chairman of the company in 2017 after Perry Ellis announced it was eliminating Feldenkreis’ position of executive chairman. Feldenkreis, 82, is the company's second-largest shareholder with 11 percent of the company's shares. His son, Oscar Feldenkreis, who serves as Perry Ellis' chief executive officer, holds 7.5 percent.
Since losing his leadership position, George Feldenkreis has worked to regain control of Perry Ellis. In an interview with the Miami Herald in May, he said he was seeking to take the company private to modernize it for the contemporary retail market.