Guess weighs options as WHP Global offers $19 CAD per share
The American clothing chain Guess may change ownership, reports Reuters. An offer to purchase the company’s shares was submitted by the investor WHP Global, the owner of brands such as G-Star and Toys 'R' Us. According to media reports, the offer will be reviewed by a specially appointed committee.
The purchase offer is $13 (approximately $19 CAD) per share. Just a week ago, Guess shares were priced below $10 ($14 CAD). After WHP Global submitted its offer, the price rose to over $12 ($17 CAD). Reuters suggests this reflects the significant interest the potential transaction has generated.
Guess with a new owner? A committee has been appointed
The American clothing store chain Guess may soon change ownership. After WHP Global's offer, the company appointed a committee to examine it.
Reuters reports that co-founder Maurice Marciano, creative director Paul Marciano, and CEO Carlos Alberini might retain their shares. They collectively own about 43% of the company.
This would be another collaboration for the brand with an investor. In 2024, the entities purchased the rights to Rag & Bone, a British-American brand founded in 2002. Guess currently manages stores under this banner in both markets.
Guess is an American clothing company founded by four brothers: Georges, Armand, Paul, and Maurice Marciano. They were born in Algeria, raised in France, and established the brand in 1981, four years after moving to the USA.
Another bankruptcy for Forever 21
The fate of another clothing brand, Forever 21, is also uncertain. The American chain has filed a bankruptcy application for the second time in six years. The company is facing financial difficulties due to declining traffic in shopping centres and competition from e-commerce.
The future of the brand depends on the sale of its assets. The company holds assets valued between $100 million ($144 million CAD) and $500 million ($719 million CAD), but its liabilities range from $1 billion ($1.4 billion CAD) to $10 billion ($14 billion CAD). If a sale occurs, Forever 21 may avoid liquidation.
