Restoration Hardware shareholders selling stock

Restoration Hardware says shareholders plan to sell up to 10M shares of its stock

Associated Press

CORTE MADERA, Calif. (AP) -- Restoration Hardware Holdings Inc. said Friday that a group of stockholders will plan to sell up to 10 million shares of the company.

The home products chain registered an offering of up to 10 million shares worth as much as $753.2 million. The company won't get any proceeds from the sale. It did not specify who will sell the shares or when the offering is expected to close.

Restoration Hardware's IPO priced at $24 per share in November and the shares have more than tripled in value since then. In morning trading the stock lost $1.88, or 2.5 percent, to $74.05.

The company had 38.9 million shares on the market as of June 10.

Restoration Hardware's biggest shareholders are the private equity firms Catterton Partners and Tower Three Partners. FactSet says Catterton owns 20.5 percent of the company's shares and Tower Three has a 19.3-percent stake.

A third private equity firm, Glenhill Capital, owns 5.3 percent of the company's shares. Chairman and co-CEO Gary Friedman holds 6.9 percent of Restoration Hardware's shares and co-CEO Carlos Alberini owns 3.9 percent.

The company announced Friedman's return to the CEO role Wednesday after Restoration Hardware agreed to buy his new company, Hierarchy. Friedman stepped down as chairman and co-CEO in October in the wake of reports the board concluded he'd had an inappropriate relationship with a former employee. Since then he'd been the company's chairman emeritus.

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