Is large-sized women’s apparel retailer United Retail Group Inc. actively
seeking a buyer? After listening to Friday's conference call discussing the
first-quarter results of the parent of Avenue stores, the answer is probably
yes.
Company chairman and CEO Raphael Benaroyal twice noted that the URG board of
directors is reviewing its options. He said that while the company would
respond “opportunistically” to making an acquisition, the board “has seriously
considered and continues to consider other strategic alternatives” to increase
shareholder value.
Benaroyal sidestepped a research analyst's question about whether the
strategic review is something new or if it has been ongoing, saying only that
he believes the company's best long-term plan is to stay focused on its growth
strategy.
The executive may be feeling the heat from shareholders. On May 17, activist
hedge fund Crescendo Partners LLC made a regulatory filing disclosing a 9.8%
stake in the company. The filing contains boilerplate language that Crescendo
has no current plans to take a more active role in the affairs of the company,
but the investor does intend to have discussions with management regarding its
business and could push the company for a change in ownership. &mdashDavid
Shabelman
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