Dickson shares rise ahead of announcement
Shares in retailer Dickson Concepts yesterday outperformed the market's leading stocks ahead of an announcement today which is expected to outline further international expansion.
The announcement may give further details about its talks regarding a possible takeover of bankrupt United States retailer Barney's.
Dickson Concepts shares yesterday rose 30 cents to $27.90.
The company, headed by Dickson Poon, said it would hold a press conference today 'to announce updates on our international investment.' It has said it would make a decision this month whether to take over Barney's.
As well as local interests such as a controlling stake in the Hong Kong Seibu department store, Dickson has a majority share in listed British retailer Harvey Nichols and Paris-based S.T. Dupont.
Mr Poon returned to the territory yesterday afternoon from a three-day trip to London.
Last month, Barney's said at least three parties, including Dickson Concepts, were interested in rescuing it. The company filed for Chapter 11 bankruptcy protection in January 1996 and won court approval to extend the protection until May 5.
Saks Holdings Inc, a US-based retailer, and Neiman Marcus Group Inc, a US-based luxuries retailer, are believed to be bidders.
Dickson was reimbursed US$1 million by Barney's in December after conducting due diligence to assess the operations and balance sheet of 13-store Barney's.
Any bid will require the approval of Japanese retailer Isetan Co, which financed three of Barney's largest department stores in New York, Chicago and Beverly Hills.
Isetan and Barney's are in dispute because Isetan wants Barney's to pay rent while in bankruptcy proceedings. Barney's says Isetan is an equity investor, not a landlord.
Barney's announced US$473,000 net profit for the five weeks to January 4.