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Lenox on the Block

By Staff -- Gifts and Dec, 1/15/2008 8:05:00 AM

Eden Prairie, MN — Lenox, owner of the Lenox, Department 56, Gorham and Dansk brands, plans to explore strategic alternatives including sale or merger, sale of part of the company, or raising additional capital. Lenox stock rose to open at $2.60 on the news, having previously closed at $2.03.

Marc Pfefferle, interim CEO, said in a statement, "We have been approached by several parties who have expressed an interest in recapitalizing, combining with or acquiring Lenox or parts of Lenox.” The board plans to conduct a strategic review, which is expected to take about six months. Berenson & Co. LLC is providing Lenox with financial advice, and Dorsey & Whitney LLP legal advice.

Lenox’s board adopted a Stockholder Rights Plan designed to reduce the likelihood that a potential acquirer would gain control of Lenox by open market accumulation, or what Lenox described as “other coercive takeover tactics,” without paying a premium for shares. If any person or group acquires 15 percent or more of the outstanding shares of Lenox common stock, there will be a triggering event causing substantial dilution to that owner. Already owning more than 15 percent of the outstanding shares of Lenox common stock does not trigger the Rights Plan until the owner acquires additional shares. The Rights Plan is in effect until January 14, 2011. A committee of independent directors of the Lenox board will assess annually whether the plan remains in the best interests of stockholders.

Cesar A Baez resigned from Lenox’s board effective January 8. Baez’s resignation results in the expiration of the agreement between Lenox and Clinton Group Inc., including Clinton Group's obligation not to exceed an 18 percent ownership interest in the company.

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Susan Engel... maybe the coup of investors that wanted her out wish
they had listened more to what she had to say... this company is stuck
in the muck not just because of the economy (which Susan knew and
could have weathered better than her replacement). Accumulating
brands at the prices paid requires a vision that builds on the products'
history. Destroying what makes the product special and then selling off
the brand at less than was paid for it, does not make for long term
success. The old days of people like Ed Bazinet knew that.

David Schwalje - 2008-02-01 09:16:00 EST

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