Billabong shares fell more than 6% this morning to $1.35 after it announced the unnamed company which made a bid earlier this month had abandoned its offer.
In a statement, Billabong said the company – believed to be Bain Capital – had withdrawn the offer.
The proposal was a cash consideration of about $1.45 per share, which values the troubled surfwear business at $694.5 million.
However, Billabong says the original offer from TPG still remains.
“The board of Billabong reiterates there is no guarantee that, following this formal process, a transaction will be agreed or that the board will recommend any proposal,” the group said.
The news is bad news for the retailer, which continues to suffer as chief executive Launa Inman continues to roll out a restructuring plan.
Kathmandu profit falls by 11%
Kathmandu has announced a full-year profit decline of 11%, but said it expects improvement in the year ahead.
The company said it made a profit of $27.9 million in the year to July, with lower profit margins due to a new loyalty program and store refurbishments.
”We will improve company performance by continuing to invest in our store network through opening new stores and relocating or refurbishing existing stores,” chief executive Peter Halkett said in a statement.
This article was first published on LeadingCompany’s sister site, SmartCompany.