Sport Chalet Engages Cappello Capital Corp. as Exclusive Financial Advisor
LOS ANGELES, Sept. 23, 2013 (GLOBE NEWSWIRE) -- Sport Chalet, Inc.
(Nasdaq:SPCHA) (Nasdaq:SPCHB), a premier, full service specialty sporting
goods retailer, today announced that it has launched a process to identify
strategic partners to accelerate the company's growth strategy. Sport Chalet
has engaged Cappello Capital Corp. as its exclusive financial advisor to
assist in exploring a range of options including strategic partners,
investors, alliances and joint ventures.
"While we lack the capital of some of our larger competitors, over the past
year we have taken definitive steps to position Sport Chalet for future
growth. We believe that in collaboration with the right partner, we can more
expeditiously implement our growth plans across all channels and create
shareholder value," said Craig Levra, Sport Chalet's Chairman and Chief
Executive Officer. "We selected Cappello Capital Corp. to help us identify
options to accelerate growth and realize the untapped value of our company and
brand. Cappello has an impressive track record of helping companies identify
strategic partners and raise growth capital, and we believe they are the ideal
firm to assist us in this important endeavor."
The company is taking this step to help execute the comprehensive set of
previously announced strategic initiatives designed to drive growth and
reinforce Sport Chalet as the retailer of choice for premium brands and
best-in-class service. These initiatives include:
*Next Generation Store Format
June 2013 marked the grand opening of Sport Chalet's first next generation
store. At 27,000 square feet, the downtown Los Angeles store is
significantly smaller than the traditional Sport Chalet store. The
smaller, more flexible floor plan allows for rapid reset of fixtures and
displays to best reflect changing customer needs and preferences. Based
on the early success of the new store, the company believes there are
opportunities for geographic expansion inside and outside of its core
markets utilizing the new format.
*Online Store Growth
Sport Chalet's online platform is already an important growth driver for
the company, with a year-over-year sales increase of 38% during the
quarter ended June 30, 2013. The online store is also an important tool
in introducing the Sport Chalet brand and products to consumers outside of
the company's core west coast markets, with almost half of online sales
coming from states where Sport Chalet does not have stores. These states
offer opportunity for additional online growth and may also become
attractive locations for new stores. Sport Chalet plans to continue to
add services, such as its vendor direct-to-customer drop ship services,
and to invest in marketing initiatives designed to drive customers across
the country to its website. The company's recently launched Team Sales
website is another long-term and differentiated growth and expansion
*Leveraging Technology and Data
Sport Chalet leverages its technology and data collection capabilities to
enhance customer service. The company plans to continue to invest in
technology and data to drive sales through personal customer marketing
campaigns, to tailor the merchandise mix to customer preferences in each
store and market and to optimize inventory.
*Mobile and Digital Leadership
The company is dedicated to offering industry-leading mobile and digital
access to capture customer attention and product sales and to engage with
customers when and how they choose.
*Local Marketing Programs
Sport Chalet connects with the communities it serves through local
marketing and community-based merchandising programs. The company intends
to strengthen its brand identity in local markets through innovative
programs, including micro-merchandising initiatives.
"We are excited to be working with Sport Chalet to identify the best possible
strategic growth partner or alliance," said Alexander L. Cappello, Chairman
and CEO of Cappello Capital Corp. "Sport Chalet has a well-established brand
and operates in attractive core growth markets in the western U.S.They are
truly the experts, offering a unique selection of performance and premium
brands, the highest quality merchandise and best-in-class service.We are very
impressed with Sport Chalet's strategic initiatives developed to drive growth
and shareholder value, including the new next generation store format, for
which early operating results appear encouraging, and we anticipate strong
interest from potential strategic partners."
About Sport Chalet, Inc.
Sport Chalet is a premier, full service specialty sporting goods retailer
featuring the industry's top sports brands in apparel, footwear, and sports
equipment. Founded in 1959 by Norbert Olberz, the company has 52 stores in
Arizona, California, Nevada and Utah; an online store at www.sportchalet.com;
a Team Sales Division; and offers more than 50 specialty services for the
sports enthusiast, including online same day delivery, climbing, backcountry
skiing, ski mountaineering, avalanche education, and mountain trekking
instruction, car rack installation, snowboard and ski rental and repair, scuba
training and certification, scuba boat charters, gait analysis,
baseball/softball glove steaming and lacing, racquet stringing, and bicycle
tune-up and repair at its store locations. For more information, visit Sport
Chalet at www.sportchalet.com.
About Cappello Capital Corp.
Cappello Capital Corp. is a boutique investment bank and registered
broker-dealer headquartered in Santa Monica, California, with global offices
in North America, Europe, Asia and Latin America. For more information, visit
www.cappellocorp.com or call (310) 393-6632.
Except for historical information contained herein, the statements in this
release are forward- looking and made pursuant to the safe harbor provisions
of the Private Securities Litigation Reform Act of 1995, including any
statement concerning the Company's prospects, ability to raise additional
financing or ability to identify or implement opportunities to improve its
results of operations.Forward-looking statements involve known and unknown
risks and uncertainties that may cause the Company's actual results in future
periods to differ materially from forecasted results. Those risks include,
among other things, the specific forward looking statements in this release
and the risks associated with each, the uncertainty concerning our ability to
return to profitability, the uncertainty that additional financing will be
available on terms acceptable to us or at all, the fact that we may be unable
to effectively execute our strategy to differentiate ourselves from our
competitors, the negative effect of the economic downturn on the Company's
sales, limitations on borrowing under the Company's bank credit facility, the
Company's ability to control operating expenses and costs, the competitive
environment of the sporting goods industry in general and in the Company's
specific market areas, inflation, the challenge of maintaining its competitive
position, the Company's ability to manage the growth of its Team Sales
Division and online business, the Company's ability to regain or subsequently
maintain compliance with the requirements for continued listing of its Class B
Common Stock, changes in costs of goods and services, and the weather and
economic conditions in general and in specific market areas. These and other
risks are more fully described in the Company's filings with the Securities
and Exchange Commission.
CONTACT: Howard Kaminsky, Chief Financial Officer
(818) 949-5300 ext. 5728
Press spacebar to pause and continue. Press esc to stop.