By Tess Stynes
Cache Inc. (CACH) said Chairman and Chief Executive Thomas
Reinckens is stepping down and will be succeed by industry veteran
Jay Margolis, as the women's apparel company also said shareholders
MFP Partners and Mill Road plan to appoint two representatives to
the retailer's board.
In addition, Cache projected fourth-quarter net sales that were
slightly higher than analysts' views.
Shares were up 9.8% at $3.15 in recent trading.
Mr. Reinckens on Tuesday said, "I have spent much of my career
at Cache and it has been an honor to be part of this organization,
leading the company as chairman and CEO for the past four years and
prior to that working as chief financial officer."
Mr. Margolis most recently served as president and CEO of
Limited Brands Inc. (LTD) apparel group, which includes Express and
Limited Stores, where he was responsible for leading a turnaround
effort and revamping its product line. Mr. Margolis is buying $1
million in shares in Cache's $8 million rights issue also announced
Tuesday that gives rights to buy stock at $1.65 a share.
Cache--which has 261 stores in the U.S., Virgin Islands and
Puerto Rico--had seen its bottom line pressured by as higher
advertising expenses and increased markdowns. The company in
November had launched a search for a new president and
merchandising chief and has been cutting costs.
Cache projected fourth-quarter net sales of $60.8 million,
slightly higher than estimates of analysts polled by Thomson
Reuters for $60 million.
Under the voting agreement, Michael F. Price and an independent
individual designated by Mill Road will be appointed to serve as
directors. Mr. Price and second designee and another person will be
nominated for election to the board at the company's annual
meeting.
Write to Tess Stynes at Tess.Stynes@dowjones.com
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