3-8-18 5:07 PM EST | Email Article

DavidsTea Inc. (DTEA) announced Thursday afternoon that co-founder Herschel Segal will leave its board after his attempt to take the company private was not well-received. The beleaguered Canadian retailer released two letters sent by Segal in a filing with the Securities and Exchange Commission (https://www.sec.gov/Archives/edgar/data/1627606/000110465918015899/a18-7864_18k.htm), a Feb. 20 letter from his investment firm seeking to buy out minority investors and take the company private, and a March 5 letter resigning his position on the board. "We all hoped that the current CEO, who joined DavidsTea just over one year ago, would be able to implement the measures necessary to turn around the performance and results of the company," Segal wrote in his resignation letter. "However, judging by the December results and the preliminary results since then, this is clearly not the case." Segal also said he was "very disturbed" by the board's reaction to the letter seeking to take the company private, though he was not specific about the reaction. DavidsTea is undergoing a strategic review, and said in its filing it would consider the offer from Segal along with other options. The stock has lost more than 85% of its value since debuting on Wall Street in 2015, and the company is valued at less than $100 million at Thursday's closing price of $3.65.

-Jeremy C. Owens; 415-439-6400; AskNewswires@dowjones.com


(END) Dow Jones Newswires

03-08-18 1707ET

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