(Rapaport…July 25, 2000) Friedman Jewelers is keeping tabs on its west-coast partner, Crescent Jewelers, saying it’s waiting for the right time to exercise an obligatory buy-out.
In order for Crescent to pay off debt, Friedman’s agreed to back a $112.5 million bank loan and uphold a warrant to execute a 50 percent buyout within 15 years. Since last year Crescent has repaid $25 million.
Crescent, which has 145 stores in seven western states, is centrally located in an area where Friedman has historically lacked a presence.
“Crescent has a leading market share in the western states, the largest and fastest growing part of the country,” said Brad Stinn, Friedman president and CEO.
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