Trans World to Buy Back $2.1 Million Worth of Shares30 Jul, 2013 By: Erik Gruenwedel
Buy back underscores rising fortunes for packaged media retailer
Trans World Entertainment Corp. July 30 said it plans to buy more than 417,000 shares of common stock for $2.1 million from investors willing to sell back to the parent of the f.y.e. (For Your Entertainment) chain as part of a modified “Dutch auction.”
A modified “Dutch auction” allows shareholders to indicate how many shares and at what price(s) they wish to tender within the company's specified price range.
Albany, N.Y.-based Trans World said it would pay from $4.50 to $5.10 per share for the stock as part of a plan to purchase up to $25 million of its common stock. The stock repurchase underscores the company’s rising fortunes following several years of sustained quarterly losses.
Trans World last year issued its first-ever cash dividend — a move heralded by investors, who had lobbied founder and CEO Bob Higgins some time for it.
The company, which owns and operates 353 f.y.e. stores and a handful of Second Spin used product locations (and related websites), reported net income of $1.6 million in its most recent fiscal period.