Newspaper article THE JOURNAL RECORD

Buyout Brings End to C.R. Anthony

Newspaper article THE JOURNAL RECORD

Buyout Brings End to C.R. Anthony

Article excerpt

C.R. Anthony Co., which started in Cushing, Okla., in 1922, has agreed to a buyout by Stage Stores Inc. for about $93 million.

Houston-based Stage will buy the common stock of C.R. Anthony for about $78 million and assume about $15 million in debt.

Plans call for closing the C.R. Anthony headquarters at 701 N. Broadway and warehouse and distribution center at 5500 W. Reno Ave. A press release issued late Wednesday by the two companies said few job reductions were expected except for the headquarters and warehouse. The merger also will mean the historic C.R. Anthony store name will virtually disappear. "It is expected that the majority of Anthony stores will be converted to Stage Stores trade names of Stage and Bealls," the release said. The combined companies will have more than 550 stores across small towns and communities in 23 states, garnering annual sales in excess of $1 billion. Purchasing C.R. Anthony represents a major strategic step in Stage's plan to be a growth retailer, said Carl Tooker, chairman, president and CEO of the Houston company. "C.R. Anthony represents an excellent geographic fit, offering significant market adjacencies with minimum overlap," Tooker said. At least one local overlap is in Yukon, where C.R. Anthony and Bealls have stores in the Chisholm West Shopping Center. Bealls, which entered the Oklahoma City market in 1994, also has a store in Edmond and Chickasha. C.R. Anthony currently has 226 stores in 14 southwestern and Rocky Mountain states. It expects to open 13 more prior to the completion of the buyout. Stage operates 319 stores in 19 states across the central United States under the names Stage, Bealls and Palais Royal. The Stage stores are located primarily in small towns and communities. Similar to Anthony, the Stage stores feature brand names in apparel, accessories and shoes. "The similarity in our strategies of offering branded apparel to small towns and communities, couples with Stages' operating expertise, will allow us to maximize the sales and profit potential of this combination," Tooker said. The combination with Stage offers the best opportunity to build value for Anthony's shareholders, said Jack Wiesner, chairman and chief executive officer of the Oklahoma City company. "This transaction allows our shareholders to continue to participate in our growth strategy through their investment in Stage Stores," Wiesner said. "We believe our associates and customers will benefit from our alliance with Stage Stores because they will be associated with a larger and stronger enterprise. "The retail environment today requires a large scale operation to continue to deliver the best value to our customers." Tooker is expected to be chairman, president and CEO of the combined companies. The merger should be completed in mid-1997. Stage has been an active participant in the consolidation of the retail sector over the past three years, buying Beall-Ladymon in November 1994 and Uhlmans in June 1996. The merger should boost earnings in 1998, the first full year of combined operations, "as the combination of our companies is expected to generate significant cost savings upon full integration," said James Marcum, executive vice president and chief financial officer of Stage. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.