YMLA Cancels Merger with Pacific Coast

Los Angeles-based young men’s apparel company YMLA has cancelled its plans to merge with San Francisco-based Pacific Coast Apparel Company as of May 2, 2001.

Larry Block, co-owner of YMLA said that the merger was terminated after due diligence was performed, revealing greater difficulties with pending litigation and accounts payables than were known prior to the merger overture.

“It was our choice. Timing is everything. They owe a lot of money with great claims against the corporation and you would have to be a giant to absorb those claims and still use the operating losses.”

Block said that he received support and advice from his bank.The CEO of East West Bank assembled a securities and exchange team to examine the deal closely and “agreed to provide us with as much money as we needed, but they advised us that it would not be in our best interest at this time,” said Block.

In a short release, Pacific Coast announced that it received notice of YMLA’s decision not to move forward with plans for the merger.Pacific Coast’s Terry McGovern had no comment.

YMLA announced the merger in March of this year, outlining a desire to merge with Pacific Coast based on its existence as a publicly traded company, which would have facilitated expansion and acquisition plans.

Block expressed that he was neither disappointed nor surprised that the merger failed.

YMLA plans to move forward with the focus on the opening of its new retail outlet in the Beverly Center, targeted for July of this year.

“Maybe there will be another time for another arrangement, but it won’t be this deal that will give us the wind to bust out all over the place.” —Darryl James