Peekay: Cancels IPO, Announces Resignations

Peekay Boutiques, in multiple filings with the SEC before Thanksgiving, reported that it was not going forward with a public offering of its stock, that it might undertake a private sale, that the person who had served as its CFO, treasurer and secretary was resigning, that its accounting firm had resigned and that it had terminated its VP of marketing and visual merchandising.

Earlier this month BODY also reported the 47-store chain had hired three separate teams of advisors to help it sell all or parts of its business and/or fashion some sort of a financial restructuring. That news came as Peekay announced it had lost $1.624 million on sales of $9.548 million during the three months ended September 30.

Peaky has blamed a long string of losses ($4.6 million in the first nine months of this year; $46.7 million in 2015; $4.2 million in 2014; and $2.6 million in 2013) on interest expense on the huge amount of debt accumulated in assembling the chain. As of the end of the third quarter, short term debt totaled $50.9 million and accrued interest and loan fees, $10.8 million.

In one of the November filings the company reported that on November 14, 2016, it “received the resignation letter of Janet Mathews, CFO, treasurer and secretary” effective December 14, 2016. In another it noted that it had “terminated Martin Walker from his position” as VP of marketing and visual merchandising with the company on November 14, 2016.

A subsequent filing noted that the company “received a letter from KLJ & Associates, LLP resigning as the company’s principal accountant to audit the company’s financial statements.”

Beginning in early 2015 Peekay had filed statements with the SEC saying it hoped to raise as much as $50 million in a public offering, months later announced the name of an underwriter, but, in the end, failed accomplish the sale of any shares. In the most recent filing it noted it had “determined not to proceed with its public offering,” but added it might, “upon consideration of its financing and strategic options, undertake a subsequent private offering.” — NM