Direct marketer Hanover Direct Inc. is merging with Chelsey Direct LLC, the company's largest shareholder.
Though the overall value of the deal was not disclosed, Chelsey Direct will acquire all outstanding shares of common stock for 25 cents per share. Chelsey and its affiliates already own 77% of Hanover Direct’s common stock. Chelsey is also the holder of all of Hanover Direct’s Series C preferred stock, the only outstanding series of preferred stock, which has 100 votes per share.
The deal has been approved by Hanover Direct’s board of directors
The merger is the second time Chelsey has made a move to acquire Hanover Direct, No. 73 in the Internet Retailer Top 500 Guide to Retail Web Sites. In May Chelsey withdrew its offer to purchase the company and take it private.
Hanover Direct’s home fashion and apparel catalogs and e-commerce sites include Domestications, The Company Store, Company Kids, Silhouettes, International Male and Undergear. Hanover also manufactures Scandia Down branded comforters that sell through various specialty retailers.
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