Clothing e-tailer Fashionmall.com said Monday that it plans to buy back up to nearly 17 percent of its outstanding shares. The New York-based company is offering shareholders $2.50 per share under the buyback plan. Shareholders can sell stock to the company under the offer until July 30. Fashionmall, best known for resurrecting British fashion site Boo.com, plans to purchase up to 1.2 million shares.
Fashionmall did not explain the reasoning for the buyback in a statement, and company representatives did not return calls seeking comment. However, companies typically buy back shares to boost sagging prices. Fashionmall's stock closed Monday up 30 cents, or 15 percent, to $2.30, down more than 50 percent from its 52-week high of $5.