GOLD COAST: US retailer Zumiez has dropped out of the race to acquire West 49, clearing the path for Billabong's purchase of the Canadian brand.
West 49 divulged Zumiez ceased to pursue the due diligence process over a confidentiality agreement requirement.
Zumiez's decision to discontinue its pursuit of the Canadian brand leaves Billabong as the primary company pursuing the purchase of West 49.
West 49 reaffirmed its support of Billabong's acquisition plans.
“The special committee and the board as a whole reiterate their continued support for the Billabong transaction and confirm their unanimous conclusion and recommendation that the Comany's securityholders should vote in favour of the Billabong transaction,” West 49 said in a statement.
West 49 is a speciality retailer of youth apparel, footwear and accessories and currently has 138 stores across Canada. Billabong announced on June 30, 2010 it had entered into a definitive acquisition agreement with the retailer. Zumiez originally announced its intent to also pursue the purchase of West 49 on July 9.