Observers hail Stor-Ikea merger.Ikea's announcement last week that it plans to buy City of Industry-based Stor Furnishings furnishings the extra type or quantity of hair on the head, tail, ears or legs, specified for a particular breed. For example, the feathers in setters, the beard in Bearded collies, the eyebrows in Schnauzers. International Inc. was lauded by industry sources as a logical culmination of competition between the two furniture retailers and as the best deal for Stor shareholders. "It isn't surprising that this has occurred," said Ivan S. Cutler, retail editor of Furniture/Today, a weekly trade newspaper based in High Point, N.C. "Ever since Ikea entered the market it was inevitable that the pressure was on Stor to perform, and its historic performance indicated troubles ahead," he said. Being bought out by Ikea may be a more attractive option for Stor shareholders than some of the other options that were available to the company, added Jerry Epperson, managing director of the Richmond, Va.-based investment banking firm Mann, Armistead & Epperson. Sweden-based Ikea agreed to buy Stor for $3.10 per share, or a total of just over $20 million. The deal follows more than a year of rivalry Rivalry Robbery (See THIEVERY.) Rudeness (See COARSENESS.) Brom Bones and Ichabod Crane bully and show-off compete for Katrina’s hand. [Am. Lit. between the two direct competitors. Ikea, which, operates 100 stores worldwide and posted $3.8 billion in sales during fiscal 1991, dwarfs Dwarfs Fannie Mae issued mortgage-backed securities pools that have an original maturity of 15 years. Stor, which operates four stores and lost $10.8 million on revenues of $70.4 million during fiscal 1991, ended March 29. Ikea entered the Southland south·land or South·land n. A region in the south of a country or an area. south  land·er n.Noun 1. furniture market when it opened a 240,000-square-foot outlet in Burbank during November 1990. Ikea was delving into a market in which Stor already operated three outlets, one each in the City of Industry, Tustin and Torrance. Each Stor outlet averages 150,000 square feet. An Ikea spokeswoman declined to reveal just how much revenue the Burbank outlet has generated for the company so far, but it appears to be thriving thrive intr.v. thrived or throve , thrived or thriv·en , thriv·ing, thrives 1. To make steady progress; prosper. 2. . Meanwhile, Stor has been battered bat·ter 1 v. bat·tered, bat·ter·ing, bat·ters v.tr. 1. To hit heavily and repeatedly with violent blows. 2. To subject to repeated beatings or physical abuse. 3. both on Wall Street and on the ledger The principal book of accounts of a business enterprise in which all the daily transactions are entered under appropriate headings to reflect the debits and credits of each account. . Stor's stock, which went public at $8 a share in April has fallen to pennies a share at various times since then. In addition, the ailing retailer lost $1.8 million on revenues of $20.7 million during fiscal first quarter 1992, ended July 19. Stor retained investment banker Investment Banker A person representing a financial institution that is in the business of raising capital for corporations and municipalities. Notes: An investment banker may not accept deposits or make commercial loans. Sutro & Co. in July to explore options for the company, including a possible merger, joint venture or equity investment. Ikea was contacted in the fall, said Lloyd Greif, managing director of investment banking for San Francisco-based Sutro. The merger "makes sense" because the two retailers are so similar. "Stor was a direct knock-off" of Ikea, Epperson said. Observed Greif: "It's a hand-in-glove kind of merger." |
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