Nina Footwear to merge with online retailer Kidpik

(Source: Nina Shoes/Facebook)

Nasdaq-listed online kids apparel company Kidpik will acquire Nina Footwear in a reverse subsidiary merger that will make the over seven-decade-old footwear retailer a public company.

The acquisition, anticipated to close in the third quarter, will result in the combined company being named Nina Holding Corp.

“I am extremely happy to fulfill the wish of my late father in-law, Mr Stanley Silverstein, to make Nina a public company on the heels of the 70th anniversary of our family business,” Kidpik and Nina Footwear CEO Ezra Dabah said.

The intended tax-free reorganization proposal has secured approval from the board of directors of both companies, with Dabah abstaining from the vote.

Dabah owns 67 per cent of Kidpik while he and his children own 79.3 per cent of Nina Footwear and his extended family own the rest of the footwear company.

Upon the closing of the transaction, Dabah, his children and wife are expected to continue to control about 76.8 per cent of the combined company’s voting shares.

Nina Footwear’s stockholders will own 80 per cent of Kidpik.

“As a team we will refocus our attention on growing Nina through brand and category extensions, international expansion, the resurrection of the Delman shoe brand, and mining our extensive Nina Footwear archive for additional growth, which we believe presents great value,” Dabah said.

Due to Dabah’s control of both companies, it is expected that Kidpik will retain its ability to use its significant net operating loss carryforwards after the merger.

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