The teenage girl-targeted mall clothing chain dELiA*s saw shares jump more than 35 percent at one point after receiving several unspecified takeover offers. While details on any deal remain vague, any massive change in leadership for this troubled company in a troubled industry is being welcomed by the market.
DELiA*s has struggled alongside most mall teen retailers, as more and more shoppers migrate online, and longtime brick-and-mortar retailers like dELiA*s struggle to adapt. Compared to most teen retailers, dELiA*s is one of the worst right now: its first quarter earnings report showed an astounding comparable store sales drop-off of 23.8%. Internal turnaround efforts have so far failed, and the company risked going insolvent unless a drastic change was to take place.
“The fact that anybody—no matter who,, no matter who, is going to take the dELiA*s brand and do something with it besides lose money,” stated equities.com. “dELiA*s has been scrambling, replacing their CFO in June in a bid to mitigate their rapid decline and possible delistment from the NYSE.”
Even if a buyout will indeed take place is far from certain. But the possibility of any change to stop the plunging of a stock that has lost 72% of its value in 2014 look to be more than enough to get investors excited.