November 02, 2020
The bike, home goods and juvenile furniture maker has offered shareholders $14.50 per share valuing the company at about $450 million in a deal backed by private equity group Cerberus.
The retailer is steps closer to emerging from bankruptcy ahead of the crucial Holiday season with agreements and settlements on its two-pronged sale effort to shore up confidence from its vendors.
Following a high-single-digit decline in Jul. and a high-teens drop in Aug., athletic footwear sales expanded mid-teens in Sep., NPD Group reported, though it attributed much of the difference to this year’s flatter and longer Back-to-School season.
Both Moody’s and Standard & Poor’s warned that the post-deal debt levels and lack of any meaningful earnings from Topgolf would significantly raise ELY’s leverage going forward, and add the risk of a business that is especially vulnerable in a pandemic.