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

Buffalo Lake residents voice opposition to proposed RV Resort

County of Stettler holds contentious Public Hearing on Paradise Shores RV Resort

Budget good for RDC, not so much Red Deer businesses

College can apply for more tech spots, but minimum wage is still going up

Red Deer hospital expansion advances to square one

Planning for future needs gets $1-million over five years

Case of former MLA accused of sex assault, interference back in court next month

Former Innisfail-Sylvan Lake MLA Don MacIntyre’s case to return to court on April 19

WATCH: Hundreds come to Red Deer Rebels Fan Fest

The Red Deer Rebels met with legions of their of fans just… Continue reading

Excavator frees dolphins trapped by pack ice in Newfoundland harbour

HEARTS DELIGHT, N.L. — A pod of dolphins trapped by pack ice… Continue reading

Structure fire destroys home in Mirror

A house in Mirror is completely damaged due to an overnight structure… Continue reading

Trudeau warns senators not to thwart will of Canadians on marijuana bill

OTTAWA — Prime Minister Justin Trudeau is reminding senators that his government… Continue reading

Burgers outselling classic baguette sandwiches in France

PARIS — Forget the baguette. The French are going crazy for burgers.… Continue reading

Can Zuckerberg’s media blitz take the pressure off Facebook?

NEW YORK — In the wake of a privacy scandal involving a… Continue reading

Brace for more red ink, no good plan for balance in Alberta budget: opposition

EDMONTON — Opposition parties say Albertans should brace for a provincial budget… Continue reading

Police: Austin bomber’s motive still unknown, despite video

PFLUGERVILLE, Texas — A 25-minute cellphone video left behind by the bomber… Continue reading

Facebook crisis-management lesson: What not to do

NEW YORK — The crisis-management playbook is pretty simple: Get ahead of… Continue reading

Most Read

Five-day delivery plus unlimited digital access for $185 for 260 issues (must live in delivery area to qualify) Unlimited Digital Access 99 cents for the first four weeks and then only $15 per month Five-day delivery plus unlimited digital access for $15 a month