Sears enters confidentiality pact with Restoration Hardware

Sears Holdings Corp. has agreed to enter into a confidentiality agreement with Restoration Hardware Inc., a California home furnishings chain that Sears has offered to buy for $6.75 per share.

The Dec. 7 agreement, disclosed in a filing with the U.S. Securities and Exchange Commission Monday, allows for Sears to complete due diligence on a possible transaction with Restoration Hardware, which operates a Greater Baltimore location at the Mall in Columbia. Sears Holdings (NASDAQ: SHLD) is the Hoffman Estates, Ill.-based operator of Sears and Kmart stores.

Restoration Hardware had previously said it would provide the information if Sears signed the same confidentiality and standstill agreement agreed to by other suitors.

Sears Holdings' bid tops an accepted offer from Catterton Partners, a private equity firm with a definitive agreement to buy Restoration Hardware for $6.70 per share. Restoration Hardware is reserving the right to review competing proposals through Thursday.

Separately, Restoration Hardware reported a net loss of $15.2 million for the third quarter, compared with a loss of $5.7 million in the same quarter last year. Sales for the quarter ended Nov. 3 were $173.7 million, up from sales of $157.1 million a year ago in the same period.

Gary Friedman, president and chief executive officer, said revenue did not achieve management expectations as weakening consumer spending and traffic continued to affect third-quarter business, particularly for high-ticket items.

Corte Madera, Calif.-based Restoration Hardware (NASDAQ: RSTO) operates more than 100 locations in the United States and Canada.

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source: bizjournals.com