DavidsTea co-founder Herschel Segal considers taking chain private

MONTREAL — DavidsTea Inc. says its co-founder resigned from its board of directors this week as the company looks to lead a private transaction for the tea chain.

The Montreal-based company, which held its initial public offering in June 2015, says in a statement that Herschel Segal resigned from the board effective March 5.

Segal, who controls Rainy Day Investments Ltd., informed the board about two weeks ago on behalf of RDI that the company decided to start exploring leading a privatization transaction for the struggling chain of 236 tea shops across Canada and the U.S.

DavidsTea says RDI wants to present a proposal for an offer to buy out DavidsTea’s minority holders or for an alternative strategic transaction, and that it does not wish to sell any of its DavidsTea shares currently.

The hot beverage retailer announced in Dec. 2017 that its board is considering strategic alternatives such as a potential financing, refinancing or restructuring.

The board formed a special committee of independent directors to consider proposals, including any made by RDI.

The chain reported weaker-than-expected results for its most recent quarter with losses surging 30 per cent from the same time one year prior. The company pointed to challenges in accessories and kits for lower same-store sales.

RDI’s chief operating officer Lorenzo Salvaggio also informed the board he is stepping down as a director.

Just Posted

RDC Kings topple Medicine Hat College Rattlers

Kings Matheus Alves scores twice in the win

Grassroots movement to clean up Red Deer is gaining momentum

Homeless people need more attention than shopping carts, says former councillor Cindy Jefferies

Improving life for people with Alzheimer’s and their families is a priority for Raitt

The federal Conservatives deputy leader is dealing with the disease in her own home

PHOTO: International Peace Day

Visitors broke bread, made crafts and trading cards at a gathering marking… Continue reading

Snowfall warning issued for Central Alberta

Environment Canada issued a snowfall warning for Central Alberta Friday afternoon. Warning… Continue reading

RDC Kings topple Medicine Hat College Rattlers

Kings Matheus Alves scores twice in the win

Saskatchewan RCMP charge man in abduction that sparked Amber Alert last Sunday

NORTH BATTLEFORD, Sask. — Saskatchewan RCMP have arrested a man following an… Continue reading

One dead following police-involved shooting in Burlington, Ont.

BURLINGTON, Ont. — Ontario’s police watchdog says a 32-year-old man was shot… Continue reading

Several injured as Tornado tears through Ottawa and Gatineau, Que.

OTTAWA — A tornado ripped through the Ottawa area Friday afternoon, damaging… Continue reading

B.C. wildfires burned large areas affected by mountain pine beetles: Experts

VANCOUVER — Clearing or burning beetle ravaged forests may be costly but… Continue reading

Dustin Byfuglien scores in overtime, Jets beat Flames 4-3 in pre-season

WINNIPEG — Bryan Little tied the game late in the third and… Continue reading

Mistrial denied in Calgary murder trial over jury’s visit to hotel Denny’s

CALGARY — A Calgary judge has denied a request for a mistrial… Continue reading

Former Canadian astronaut says space shuttle is a vehicle of hope

OTTAWA — Sending messages of hope from space is a big part… Continue reading

Canada requests trade panel on uncoated groundwood paper ruling by U.S.

OTTAWA — Canada has requested a NAFTA trade panel review a U.S.… Continue reading

Most Read