stuck in neutral
Posted by Shirley Brady on February 1, 2011 11:30 AM
Back around American Thanksgiving, J. Crew announced it was being sold to a consortium that would keep current CEO Mickey Drexler in place as part of a $3 billion buyout.
The news may have been welcomed on Wall Street, but a group of investors felt they were getting the old soft shoe routine from management about the sale. Not convinced it was a fair and open bidding processing, a $10 million lawsuit was filed to protest the proposed takeover by private-equity firms TPG Capital and Leonard Green & Partners LP.
J. Crew officials, including Drexler and president Jenna Lyons, also the brand's creative director, had hoped to settle, but their offer to appease disgruntled shareholders has just been squashed. Now, it's up to Judge Leo Strine of Delaware's court of chancery to decide.