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Cost-U-Less shareholders seek strategic alternatives
By Mike Duff,
DSN Retailing Today
Friday, February 9, 2007
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In a response to shareholder concerns, Cost-U-Less has disclosed that its board of directors has engaged professional financial advisers to assist in evaluating strategic alternatives although it didn't discuss any present or eminent sale of the
company.
Cost-U-Less disclosures, filed with the U.S. Securities & Exchange Commission, were made in response to statements made in earlier SEC filings by certain shareholders, who suggested that the board of directors should engage an investment banker to help explore alternatives for enhancing
shareholder value and liquidity.
Cost-U-Less ceo J. Jeffrey Meder noted, “Even though we have stated publicly on numerous occasions that our board is continually exploring and evaluating ways to increase shareholder value, these recent public suggestions may have created the opposite impression. We feel that our shareholders will benefit from a more accurate view of how much attention
our board is paying to this important subject.”
Since conducting its initial public offering in 1998, the Cost-U-Less board has formally engaged three outside financial advisers, on four separate occasions, during the period from 2000 to 2004 and most recently in 2006, the company stated.
Primarily broad mandates, the company brought in the advisors to examine a range of potential strategic opportunities, and in some cases involved assessment of specific opportunities that were under consideration. Strategic alternatives examined included potential business combinations, acquisition or divestiture opportunities, strategic partnering opportunities and potential equity financings, as well as alternative uses for the company's cash and borrowing capacity such as possible expansion of the stock repurchase programs the company has implemented periodically since 2001.
Companies referred to in story:
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