Cosmetic Center plans new stock class

February 25, 1992|By Michael Dresser | Michael Dresser,Staff Writer

The Cosmetic Center, a Savage-based retail chain, will create a new class of non-voting stock to let it conduct a new equity offering without imperiling the founders' control of the company.

Under the plan announced yesterday, each share of the company's common stock will be reclassified as one-half share of Class A non-voting stock and one-half share of Class B voting stock.

The company said the plan will be submitted to a vote at the company's annual meeting March 13, but the result is a foregone conclusion because the family of Chairman Louis R. Weinstein, which controls about 51 percent of the stock, favors the measure.

In connection with the stock reclassification, Cosmetic Center said yesterday that it will file a registration statement with the Securities and Exchange Commission for a public offering of an undetermined number of Class A non-voting shares. The timing of the offering was not announced.

Bruce Strohl, chief financial officer, said the new capital would be used to take advantage of the "buyer's market" for real estate leasing. He said the company would like to increase its rate of growth, now five or six stores a year. He did not provide specifics but said, "We're not going to go out and open 40 stores a year."

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