Apparel retailer Guess? Inc. on April 29 announced it sold $300 million in debt that it will use in part to repurchase $220 million worth of shares.
The company brokered a plan to purchase about $170 million worth of shares from investor JPMorgan Chase Bank. Another $26 million worth of privately-held stock was bought for about $18.75 a share. Guess will also repurchase approximately $24 million worth of shares on the open market.
Guess said in a release it could use the remainder of the funds to repurchase more shares, pay down debt or make capital investments.
In February, former Lucky Brand chairman and Chief Executive Carlos Alberini took the reins of Guess. Alberini was formerly the president and chief operating officer of Guess from 2000 to 2010.
Alberini has told investors that he will outline his strategic vision for the company this summer. Guess has been trying to restore profitability after years of declines. The company operates more than 1,700 retail stores around the world.
Manufacturing, retail and trade reporter Rachel Uranga can be reached at email@example.com or (323) 549-5225 ext. 251. Follow her on Twitter @racheluranga
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