R.G. Barry Corporation, the makers of Dearfoams, announced Monday that its board of directors unanimously rejected an unsolicited acquisition offer made by Mill Road Capital on Jan. 28.
Gordon Zacks, chairman of the company’s board, commented in a statement that the board found that the offer did not provide the value that would be in the best interest of R.G. Barry’s shareholders. Details of the proposed deal were not provided.
“Because we believe that our business plan is likely to deliver greater value to our shareholders over time,” said Zacks, “the board concluded that the Mill Road proposal does not merit further consideration.”
Greg Tunney, president and CEO, added, that the Pinkerington, Ohio-based company will continue to introduce new products to new channels and explore targeted acquisitions and other growth initiatives. “We believe our share price is undervalued in the current depressed stock market and does not reflect the true value of our business,” he said.
In other economy-related news at R.G. Barry, the company said its board has also decided not to initiate a dividend policy or make a cash distribution to shareholders at this time, citing “the very difficult conditions in the retail industry and the challenges that even profitable companies are experiencing in obtaining financing.” The decision will be re-evaluated on an ongoing basis.