Blue Holdings Nixes Acquisition

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Blue Holdings Inc. said late Tuesday that it has decided to terminate a proposed agreement to acquire Long Rap Inc., a Washington D.C.-based clothing retailer.


The deal was originally announced in June and promised to give Blue Holdings a considerable retail presence in the D.C. area Long Rap owns 24 Against the Wall retail stores in the area, the Commerce-based maker and retailer of high-end denim products said.


The two companies said they came to an agreement that the acquisition would not be in the best interest of shareholders. The deal was initially reported as being worth $ 32 million in cash and stock.


Shares in Blue Holdings closed down 32 cents to $4.14 on Tuesday.

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