Mill Road Capital Reiterates Desire to Acquire R.G. Barry in Letter to Board

Mill Road Capital, R.G. Barry: In an amended 13D filing released this morning, Thomas E. Lynch‘s Mill Road Capital reported that it was maintaining its 9.6% stake in footwear company R.G. Barry Corp. (NASDAQ:DFZ). In the disclosure, Mill Road shared a letter it sent to R.G. Barry Board Chairman Gordon Zacks on September 30th. In the letter, Mill Road and Lynch give more “clarity” to their initial proposal to acquire R.G. for $20 a share last month.

The letter says the fund has above “$600 million under management, over $350 million of which is callable on ten days notice to fund the proposed acquisition of RG Barry,” adding that it would “commit to fund 100% of the equity portion” of the deal. It’s worth mentioning that Mill Road’s original offer was to buy the company for $228 million, so it appears that it has the financial ability to negotiate up to near $350 million if necessary.

Disclosure: none