Dive Brief:
- Digital Brands Group is considering a proposal from one of its shareholders seeking to buy its remaining common stock for $77.58 per share in cash, the company said in a Wednesday press release.
- The proposal would significantly exceed its stock price, which opened Thursday at $13.97. The unnamed shareholder seeking to buy the company’s remaining stock has a net worth of more than $1 billion, according to the company.
- The company’s board of directors is consulting with its recently retained financial adviser regarding the offer, but it has not set a deadline or timeline for making its decision.
Dive Insight:
Digital Brands Group is mulling an offer from one of its shareholders after announcing that it was undergoing a strategic review. Earlier this week, the company said it is exploring a possible sale, merger or other financial transaction as part of that process.
It made a similar move in 2023, when it considered taking the company private.
In July, Digital Brands Group sought to increase its per share stock price to $1 to continue to be in compliance with the Nasdaq. To reach that threshold, the company executed a 1-for-40 reverse stock split, shrinking the number of shares from roughly 23 million to 575,000.
In recent years the parent company of Bailey 44, DSTLD, Stateside, Sundry and Avo set out to open 50 stores. At that time, the physical stores were expected to generate more than $75 million in annual revenue.
