From Home Furnishing Business
Barron’s Reports Purple and Coliseum Capital Enter into MOU
In a report on Barrons.com, it was reported that Coliseum Capital had filed a 13Ds with the Securities and Exchange Commission. The filling occurs within 10 days of an entity’s attaining more than 5% in any class of a company’s securities.
Coliseum holds 46,814,450 shares of the mattress-and-bedding retailer, equal to 44.4% stake when accounting for outstanding Class A and Class B stock.
On April 11, Purple Innovation and Coliseum Capital entered into a memorandum of understanding, or MOU, that laid the groundwork for a cooperation agreement by April 19. Under the terms of the agreement, “Purple Innovation’s board will increase to eight seats and include three new appointees, among other changes,” according to Barron’s.
“Further, Coliseum Capital co-founder Adam Gray, who has served on Purple Innovation’s board since early 2018, will become chairman. Scott Peterson, a board observer since last September, will be included with Purple Innovation’s other board nominees during the 2023 annual shareholders meeting.”
Other stipulations in the agreement include the settlement of litigation between Purple Innovation and Coliseum, the reversal of recent stock voting amendments and it requires Purple Innovation “to redeem noninterest preferred shares issued last quarter as a stock dividend to the retailer’s common shareholders.”