Acquisition News--Gingiss Formalwear, Seattle's Best Coffee
Addison, Illinois--Gingiss Formalwear, a tuxedo sales and rental chain, is seeking a merger partner or capital infusion as it grapples with a debt load, increased competition and a sluggish economy that has dented demand for formalwear. Gingiss, controlled since 1999 by San Francisco-based Gryphon Investors Inc., has come under pressure during the past six months and is expected to make a move soon, following its busy spring season when formalwear demand peaks for weddings and proms. The company is grappling with a debt load that's the legacy of Gryphon's acquisition. Also, Gingiss is attempting to raise cash or cash out a little more than two years after it merged with Los Angeles-based Gary's Tux Shops, another Gryphon investment. The merger created the largest player in the fragmented $1 billion formalwear industry but customer demand has lagged post-9/11. -Crain's Chicago Business
Atlanta--Starbucks Corp. has completed its purchase of Seattle Coffee Co. from AFC Enterprises Inc. for $72 million in cash. The deal, announced in April, includes the Seattle's Best Coffee and Torrefazione Italia coffee brands, as well as the franchises on the North American continent, but excludes markets outside of North America and Hawaii. -Puget Sound Business Journal
