Online children’s player Kidpik and heritage shoe company Nina Footwear Corp. have joined forces, the companies announced on Tuesday.
Under the merger, which both companies’ boards have approved, the new entity will operate under Nina Holdings Corp under the symbol “NINA.” Stockholders of Nina Footwear will own 80 percent of Kidpik’s outstanding common stock when the merger closes.
Ezra Dabah, the current chief executive officer, chairman and majority stockholder of Kidpik is also the chief executive officer of Nina Footwear, which is 100 percent owned by Dabah and his extended family. Following the merger, Dabah’s kids and wife will continue to own 76.8 percent of Nina’s voting shares. Kidpik’s officers and directors will remain the same following the transaction.
In a statement, Dabah said the deal is meant to increase the stockholder value, revenue, cashflow and prospects of Kidpik while making Nina a public company, something Dabah’s late father in-law and Nina Footwear co-founder Stanley Silverstein always wanted to see.
“As a team we will refocus our attention on growing Nina through brand and category extensions, international expansion, the resurrection of the Delman shoe brand, and mining our extensive Nina Footwear archive for additional growth, which we believe presents great value,” Dabah said. “I believe the retention of the net operating loss carryforwards is of tremendous value to our shareholders in entering into the merger.”
Stanley and Mike Silverstein founded the New York-based Nina Footwear in 1953 as a maker of women’s premium clogs. The brand has since expanded to include a robust footwear and accessories collection for women and children. Stanley’s daughter, Nina (for whom the company was named) is currently the company’s chief creative officer.
In addition to his roles at Kidpik and Nina, Dabah served as CEO of children’s specialty retail store operator Ezrani 2 Corp. (or RUUM American Kid’s Wear), between 2013 and 2015, until it filed for Chapter 7 bankruptcy. He also joined The Children’s Place Retail Stores in 1991 as chairman and CEO and took the company public in 1997 before resigning in 2007.
