Quicksilver's investor demands it put itself up for sale
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Consac LLC, an unhappy investor in Quicksilver Inc has called for the clothing chain to put itself up for sale after it lost almost three-quarters of its value in the past year.
Ryan Drexler, Consac’s president, sent a letter to Quiksilver saying the company should find a buyer “in order to preserve diminishing shareholder value before Quiksilver’s conditions get even worse,” reported Bloomberg.
It´s worth to remember that Consac, which said it owns more than 3.5 million shares of Quiksilver, pushed Quiksilver to make a deal barely a month ago. Consac’s Drexler previously sent the company letters on Oct. 8 and March 9.
In this sense, Consac is encouraging the surf and snowboarding apparel retailer to seek a strategic sale to the likes of Nike Inc. or VF Corp.
On the wake of the news, Quiksilver stock advanced 1.7 percent to 1.76 dollars on Wednesday in New York.
On this note, Quicksilver’s shares tumbled yet again last month after it replaced its top executives and restated earnings results. The management shake-up followed a disappointing sales forecast earlier in the month and a restatement of earnings. Quiksilver said it made errors recording a write-down of the sale of its stake in Surfdome Shop Ltd, recalled Bloomberg.