RE:WhyIt's a good question which many of us have been speculatiing on these past few weeks.
RET is a solid investment but it appears the current family has run out of ideas or interest as to how to move from its staid 97 year old model into a growth and value investment.
Swartz has tried to dress up its print sales by diversifying into high value merchandise but its a what you gain on the roundabouts you lose on the swings .
RET remains a cash cow, IDG a one trick cash pony that is petering out.
Once again, a family business built on two generations of management are found to be wanting for new ideas .
Putting all of this together, My advice for both families is to monetize all assets .
ATZ would be an obvious choice for RET , as that move would cover the two disparate apparel bases.
Indigo has its atttactive niche products which might benefit REat, but its lead weight is the print business which should be dumped..