Red Lion stock falls after it halts hunt for buyer
Red Lion Hotels Corp.'s shares plunged to a two-year low Wednesday after the hotel operator said it has not found a buyer for its business.
THE SPARK: Red Lion brought on financial advisors in March to help the struggling company review its strategic alternatives. This included the possible sale of the entire business.
Red Lion said Wednesday that it has contacted more than 75 potential industry and financial partners. While it received a number of non-binding indications of interest, it did not receive any offers. As a result, it has suspended the process.
THE BIG PICTURE: Red Lion said it will continue to look for other opportunities to improve its value for shareholders. The company said its current focus is on selling its non-core assets and reducing its debt.
Red Lion has recently sold two properties and has an agreement to sell a third hotel. As of June 30, the Spokane, Wash., chain had 47 hotels in nine states and one in Canada.
The company also said that its long-time chairman, Donald Barbieri, will retire at the end of 2012.
SHARE ACTION: Shares of the company fell $1.15, nearly 15 percent, to $6.58 in late afternoon trading. Earlier, the stock fell as low as $6.21, a price last seen in September 2010.