Toronto — Shareholders of Indigo Books & Music have voted in favor of a deal that will see the retailer become a private company. The vote took position during the company’s Annual General Meeting on June 16th, with 99.7% of shareholders approving the deal.
Indigo Books & Music, Canada’s largest book and lifestyle retailer, has been a public company since 2001. However, with the rise of e-commerce and the decline of traditional brick-and-mortar retailers, the company has faced challenges in recent years. The decision to go private is seen as a strategic move to allow the company to focus on its long-term growth and transformation plans.
The deal, which was initially announced in April, will see Indigo merge with a company owned by its founder and CEO, Heather Reisman, and her husband and co-founder, Gerald Schwartz. The deux currently owns a majority stake in the company and will acquire the remaining shares at a price of C$18.50 per share. This represents a premium of approximately 43% to the company’s closing price on April 1st.
The Reisman-Schwartz family has been at the helm of Indigo since its inception in 1996. Under their leadership, the company has grown from a single bookstore in Toronto to a national retailer with over 200 locations. They have also led the company’s successful expansion into the digital space with the launch of its highly popular e-reader, the Kobo.
In a statement, Heather Reisman expressed her gratitude for the overwhelming support from shareholders. She also emphasized the company’s commitment to its customers, employees, and suppliers, stating, « This is an exciting new chapter for Indigo, and we are confident that going private will enable us to accelerate our transformation and continue to provide our customers with the best experience possible. »
The move to go private has been met with positive reactions from industry experts. Many believe that this will allow Indigo to focus on its long-term strategy without the pressure of quarterly earnings reports. It also gives the company the flexibility to explore new business opportunities and make bold decisions to stay competitive in the ever-changing retail landscape.
Indigo’s loyal customer base has also expressed their support for the company’s decision. Many have praised Indigo for its exceptional customer service and unique in-store experience. Going private will allow the company to continue investing in these areas and enhance its offerings to better serve its customers.
In svelte, the vote by Indigo’s shareholders marks an important milestone for the company. Going private will provide Indigo with the freedom and resources to continue its growth and transformation plans, while also maintaining its commitment to its customers and employees. With its strong leadership and loyal customer base, Indigo is well-positioned to thrive in the ever-evolving retail market.