Sears makes offer for Restoration Hardware
Following an announcement by specialty home decor retailer Restoration Hardware to enter into an acquisition agreement with a private equity firm, Sears Holdings has made a bid for the financially struggling retailer.
Sears Holdings has offered $6.75 per share for the mid-to-high-end retailer, a higher bid than the $6.70 per share offer from private equity firm Catterton Partners. Sears currently owns a 13.7 percent stake in Restoration Hardware.
Restoration Hardware, however, has said it is unwilling to enter into a confidentiality agreement requested by Sears. In a letter to Restoration Hardware, accompanying a filing with the Securities and Exchange Commission, Sears requested the retailer provide some non-public information and additionally enter into a confidentiality agreement over that information.
Today, Restoration Hardware said it would go forward with providing information to Sears as long as Sears will agree to execute the customary confidentiality and standstill agreement on substantially the same terms that other parties have signed.
"While we do not understand your requirement that we submit such a proposal prior to providing us with due diligence information,” Sears said in the letter, “we