ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Wednesday, September 4, 1996 TAG: 9609040126
SECTION: BUSINESS PAGE: B8 EDITION: METRO
SOURCE: MEGAN SCHNABEL
Best Products Co. Inc., the financially beleaguered Richmond-based specialty merchant, said Tuesday it has received an unsolicited merger offer from a Florida investment company.
"We're studying the proposal," said Best spokesman Ross Richardson. "We're not going to take a position on it until we complete this review."
The offer from Miami-based Ocean Reef Management Inc. proposes that Best Products stockholders receive $2 a share. Best stock, with about 31.6 million shares outstanding, closed Tuesday at $1.62 1/2 in trading on the Nasdaq exchange.
Best's financial problems began in 1988, when it was saddled with huge debts during a leveraged buyout. The retailer, which operates a store in Roanoke, has filed for bankruptcy protection. Last year, Best reported a net loss of $95.7 million and, to save money, discontinued its trademark catalog, which it launched in 1957.
Ocean Reef, formed several months ago by Rachmil and Ilia Lekach, former executives of Parlux Fragrances, and other partners, recently bought L. Luria & Son, a 45-store jewelry and specialty retail chain based in Miami.
Like Best, the publicly traded Luria had operated until recently as a catalog showroom and had lost millions of dollars over the past several years. Ocean Reef bought the 25 percent of the company owned by the Luria family.
Best operates 169 stores in 23 states in addition to 11 Best Jewelry stores and a nationwide mail-order service.
LENGTH: Short : 35 linesby CNB