J.Crew is a little p.o.'d at it's shareholders.
On Monday, shareholders said that they were no longer supporting the settlement of the $3 billion deal to be taken private because of results from an initial go-shop period were revealed to the public. J.Crew said that it would stand by the settlement both parties reached last month and file a motion to dismiss the case.
In November, J. Crew inked a deal to be acquired by TPG Capital and Leonard Green & Partners, which allowed the company to consider other offers through January 15. But shareholders sued and at the last minute hammered out a settlement to extend the company’s “go-shop” period, giving rival bidders another month to make a better offer. The deal envisioned a $10 million payment to plaintiffs.
The retailer, in a letter Tuesday to Delaware Chancery Court Vice Chancellor Leo Strine Jr., said it had fulfilled its side of the bargain. “If plaintiffs continue to refuse to negotiate in good faith over the specific wording of a release, defendants will assert counterclaims and third-party claims for breach of contract against plaintiffs and the class, among others,” the document said.
J. Crew fired back in its letter: “Having largely reaped the fruits of their bargain, plaintiffs now want to renege.”