On Wednesday Collective Brands, Inc., the parent company of Payless and Stride Rite, Air Jordan 15s posted a loss of $35 million for their second quarter. This Nike LeBron 11 resulted in plans to close low sales volume stores in the United States, Canada and Puerto Rico. By the end of this year that means 275 Payless and 75 Stride Ride children shoe stores. Of the company current 4,844 stores, 4,461 are Payless shoe stores.
Although revenue rose five percent from last year, as of July 30 the company acknowledged that having $234.8 million cash on hand was outweighed by approximately $657 million in their long term debt.
Surprisingly, Collective Brand shares showed an increase of over 40 percent in after hours trading after the announcement was made and settled at an increase of 33.3 percent from Wednesday close. The largest shareholder Air Jordan CDP with over 10 percent of the outstanding shares is PrimeCap Management Co.
Perella Weinberg Partners and Kurt Salmon have been hired as advisors to review and advise on the options for Nike KD 7 moving forward. A short duration shareholder rights plan has been adopted to fend off hostile or unsolicited offers and Air Jordan 5s will take effect if there is a buy of more than 15 percent of the outstanding common stock.
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