New York–Perry Ellis International (PEI), which has reportedly been in talks with both brand management firms and investment banks, may be prepping itself for a sale.
According to the Wall Street Journal, Sequential Brands Group approached PEI to discuss a possible takeover. Separately, TheStreet.com reported that PEI was holding strategy talks with investment banks Peter J. Solomon and Bank of America Merrill Lynch.
Observers point to other brand management firms, like Iconix Brand Group and Authentic Brands Group, as possible suitors.
But the strategy talks may also be focused on fending off activist investors, like Legion Partners Asset Management LLC and the California State Teachers’ Retirement System, which together took a 6% in PEI in July.
PEI, which owns the Perry Ellis brand, Original Penguin, Rafaella and Callaway Golf, among others, reported a narrower second-quarter net loss of $1.6 million in August, improving on its $2.8 million loss the previous year. Revenue for the quarter was down 4% to $204 million.
“During the second quarter, our golf platform and Original Penguin brands led our growth while our Perry Ellis Men’s Collection achieved solid sell through at retail,” PEI president Oscar Feldenkreis said in August.
The company said it was continuing its strategic review of brands “with a goal to exit non-core, low growth brands and businesses.” It added that it had exited 23 private label and exclusive brands during the fiscal year.