Trans World Founder Extends Privatization Bid4 Apr, 2008 By: Erik Gruenwedel
Trans World Entertainment Inc. founder, chairman and CEO Robert Higgins has extended to May 31 his attempt to take the retail parent private in a $5 per share cash acquisition offer.
Albany, N.Y.-based Trans World owns the F.Y.E., Suncoast, Second Spin and related retail properties and Web sites with annual revenues exceeding $1 billion.
Higgins, together with Riley Investment Management last year submitted a letter of intent (LOI) to the Trans World board offering to buy out all outstanding shares of Trans World.
That letter expired March 31 and a new LOI was submitted April 2, according to regulatory filings.
Higgins controls more than 46% of Trans World shares while Riley owns nearly 11%.
The CEO said taking Trans World private would reduce costs and investor demands, two factors he said are vital to competing in the current entertainment retail climate.