Is Delia's For Sale?

Delia's Corp. (New York) has retained a consulting company “to explore and evaluate strategic alternatives for the company.”

“Our decision to explore strategic alternatives reflects the board's commitment to maximizing shareholder value,” said ceo Stephen Kahn.

While the Delia's announcement emphasized that “there can be no assurance that the company's review of strategic alternatives will result in a transaction,” there is speculation that the teen apparel retailer is seeking a buyer. The firm it hired is the Peter J. Solomon Co.

A month ago, the company reported flat sales for its second quarter, though retail sales increased 32 percent, driven by new store openings. Catalog and Internet sales decreased 22 percent. At the time, Kahn said, “Despite a solid start to the second quarter, we saw a strong reversal in our business as the back-to-school season began. We are disappointed with these results and are focused on optimizing our resources to improve the company's financial performance.”

About 58 percent of the company's sales come from its web site and catalog. The retail chain — some 45 stores along the East Coast and in the Midwest — generates another 38 percent.