Avenue Bought by Redcats USA

Redcats USA, a subsidiary of a French retail company, said Thursday it has completed its tender offer for Rochelle Park-based United Retail Group Inc.

Redcats USA, a leading catalog retailer, in September said it would pay $199 million, or $13.70 a share, to acquire United Retail, the company that operates 483 Avenue plus-size women's clothing stores. The offer represented an 82 percent premium on United Retail's pre-offer stock price of Sept. 10 and analysts hailed the deal as good news for shareholders.

United Retail Group founder and Chief Executive Officer Raphael Benaroya, and Redcats USA CEO Eric Faintreny said in a conference call with The Record on Thursday that the merger will benefit both companies.

"It's a perfect match because Avenue and Redcats operate in the same market segment of the plus size," said Faintreny. "We can help Avenue grow faster on the Web, and the retail expertise of Avenue can help us to try some of our successful brands at retail." (read more)

---

Sounds like an optimal acquisition. It puts Avenue under the same roof as such powerhouses as Roaman's, Chadwick's and Jessica London, solid names in the plus size apparel domain. My instincts tell me this is a great indicator, reinforcing awareness that our plus size perfectly shaped world is a significant and meaningful demographic.