Less than 2 weeks after Blue Holdings (NASDAQ: BLUE) opens its second retail store in San Francisco it is now announcing it will not buy the operator of Up Against the Wall, Long Rap, Inc.
"While we are disappointed that we were unable to conclude our acquisition of the Up Against the Wall retail stores, we are now able to re-focus our efforts on our wholesale business, while continuing to develop our retail strategy," said Paul Guez, Chairman, Chief Executive Officer and President of Blue Holdings, Inc. "Blue Holdings is well positioned in the market place, and both management and the Board of Directors remain very committed to preserving and increasing shareholder value."
The deal's termination is said to be mutually agreed upon. Originally announced in June the plan was for Blue Holdings to pick up the chain of 24 and counting Up Against the Wall stores for $32 million (half cash, half common stock).
Press Release (Reuters)