School Specialty has reported that its takeover by LBW Holdings has been put on hold following the pull out of three of LBW’s banks from the agreement.
It believes the banks backed out due to concerns over disappointing results in August and September and its near-term financial and operating prospects.
School Specialty, which said that LBW had not informed the company of its intentions, had originally anticipated the merger would be completed on or about 30 September.
The "drop dead date" under the merger agreement was 31 October. LBW is not obligated to close the deal.