Pic ‘N’ Save Truce Buys Time to Arrange Sale

Pic ‘N’ Save and Girard Partners, an investment group pursuing the company, reached a truce Thursday calling for the two sides to stop bombarding shareholders with pleas for support.

Both sides noted that the pact would give Pic ‘N’ Save until at least July 15 to arrange a buyout without the distraction of an active fight for control of the company.

The truce came as Pic ‘N’ Save disclosed that it has received “expressions of interest” in the company from prospective “financial bidders.” A spokesman declined to elaborate, other than to say company officials hope one of the financial bidders or another party would submit a proposal providing a fair value to shareholders.

Girard, which disclosed in April that it owns 6.7% of Pic ‘N’ Save’s stock, has sought to gain control of the retailer’s board through a proxy fight or by direct consent from shareholders. The investment group has said it wants to buy Pic ‘N’ Save itself or sell it to the highest bidder.

David H. Batchelder, the La Jolla financier who heads Girard, said he agreed to the truce because of two moves by Pic ‘N’ Save. He said Pic ‘N’ Save agreed to open its books to Girard without, as it proposed earlier, barring the investment group from buying additional company stock for a long period.

Batchelder noted that the retailer also authorized management to participate in a possible buyout. He said that Pic ‘N’ Save previously disclosed that it would consider a sale to an outside bidder, but until Thursday it had not signaled its willingness to pursue a management buyout as well.

Batchelder said he now is “hopeful” that a deal for the company will be reached by July 15. He said, however, he did not know anything about other possible bidders.

Under pressure from Girard, Pic ‘N’ Save put itself up for sale last month. All along, however, the company has expressed doubt that a financial company could raise enough money for an acquisition as a result of the collapse of the junk bond market and weakness in the retailing industry.

Besides putting on hold the proxy fight between Pic ‘N’ Save and Girard until at least July 15, the truce postpones the retailer’s annual meeting from July 2 to Aug. 15.

Pic ‘N’ Save, based in Dominguez, owns 189 stores in the West, South and New York City area specializing in close-out and other discount merchandise.

The announcements came after the close of stock trading. Pic ‘N’ Save shares, traded over the counter, closed at $12.375, down 12.5 cents.