Trans World Entertainment Corporation Announces Agreement to Sell FYE Segment

ALBANY, N.Y., Jan. 23, 2020 (GLOBE NEWSWIRE) -- Trans World Entertainment (Nasdaq – TWMC, “TWEC” or the “Company”) a leading specialty retailer of entertainment and pop culture merchandise with stores in the United States and Puerto Rico, primarily under the name fye, for your entertainment, and on the web at www.fye.com  and www.secondspin.com, announced today that it has entered into a definitive Asset Purchase Agreement with a subsidiary of Sunrise Records and Entertainment Ltd. (“Sunrise”), the parent of Sunrise Records in Canada and HMV Records in the United Kingdom, to sell substantially all of the assets of the Company’s wholly owned subsidiary, Record Town, Inc. (the retail, music, film, video and popular business constituting the For Your Entertainment (“FYE”) segment of the Company’s business), for $10 million in cash, subject to a net inventory and other adjustments, plus the assumption of certain liabilities (the “Transaction”). 

The Transaction follows a process in which the Company’s board of directors explored strategic alternatives available to the Company.  The Transaction was unanimously approved by the Company’s board of directors.  

The Transaction is expected to close in the first quarter of 2020, subject to the satisfaction or waiver of customary closing conditions set forth in the purchase agreement, including the receipt of certain third party consents and the approval by at least two-thirds of the Company’s stockholders. The Company will call and hold a stockholders’ meeting seeking to obtain this approval.

The Company will continue to operate its business in the ordinary course until the Transaction closes, and thereafter Sunrise anticipates keeping substantially all of the current FYE employees. Following the closing, the Company plans to focus on the operation of its wholly owned subsidiary, etailz, Inc.

The description of the Transaction contained herein is only a summary; further details on the Transaction are contained in the Company’s report on Form 8-K filed on or about the date of this press release.  More information on the Transaction will be included in a proxy statement that the Company intends to file with the Securities and Exchange Commission (the “SEC”) and distribute to stockholders.  Such proxy statement will include information regarding the timing of the stockholders’ meeting to consider approval of the Transaction.