Deal to Buy Lillian Vernon Falls Through: The New Rochelle, N.Y.-based catalogue retailer said its proposed acquisition by Freeman Spogli & Co. was terminated after lowered earnings projections derailed financing efforts. Lillian Vernon Corp. said in June that it had agreed to be acquired by the Los Angeles-based private investment firm for $19 a share, or about $190 million. But Lillian Vernon said financing could not be obtained for the acquisition, in part because the company's net income will not reach projected levels for the fiscal year ending Feb. 25. Earnings for the year, after costs of the proposed transaction, will be 10% to 15% lower than the earnings of $1.38 a share for the last fiscal year, the company said. It also said higher paper prices and uncertainty in the retail sector were factors.
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