Jeffrey Lubell, Chairman of the Board, Chief Executive Officer and Creative Director of the True Religion Apparel, Inc. (the “Company”) and the Company are parties to an Employment Agreement, dated January 4, 2006, as amended (the “Employment Agreement”).
On February 26, 2013 the Company informed Mr. Lubell that it had determined not to extend the term of the Employment Agreement at the time of its scheduled termination on June 30, 2013.
In October 2012, we announced our Board of Directors had formed a Special Committee comprised of its non-management directors to explore and evaluate potential strategic alternatives available to the Company. In light of this continuing review, the Company believes that it would not be appropriate to renew the Employment Agreement for an additional three-year period at this time. The Company further informed Mr. Lubell that it would like the opportunity to explore an alternative arrangement with him.
Notwithstanding the determination not to renew the existing Employment Agreement, Mr. Lubell continues as Chairman of the Board, Chief Executive Officer and Creative Director of the Company.
The Special Committee’s review of strategic alternatives available to the Company is ongoing. No decision has been made to engage in a transaction or transactions, and there can be no assurance that any transaction or any other strategic alternative will occur or, if undertaken, the terms or timing thereof.
With that Lubell news it would certainly seem a takeover is in the works for this summer. Anyone buying out the company would want him out of the picture. Unless I read this totally wrong, an anoucement will be made before his exit date of the best offer.
Sounds like a term of service to be agreed upon. The last article on the summary page, Brian Frank of the Frank Value Fund mentioned buyout around $35.
Wonder how Mr. Lubells buyout of $25M figures in this new arrangement.
Hott Tope was just bought for $600 million or approx 7.6x EBITDA, their EBITDA margin is 9.9%.. TRLG put up 91.5 of EBITDA with a 19.6% margin... 7.6x TRLG '12 EBITDA gets you to $27.50, given premium brand and substantially better margins this should easily get $30+