As you learned last week, "Fat Pockets" is here to shine a light on the story behind the scene. Unlikely that anyone reading this actually shops there, but next time you see a store called New York & Co. in a mall take a peek inside. You won't
be impressed by the casual and work apparel and accessories in any of its 519 stores.

New York & Co. was known as Lerner New York an underperforming seller of plus-sized women's apparel that was owned and then dumped by its former owner, Limited Brands. Having grabbed it on the cheap for $150 million, Bear Stearns revived the company by targeting women of all sizes, by adding mid- and high-priced, stylish fare and lingerie.

Two years after its investing in 2002, Bear Stearns took the Company public. Following a recent additional stock sale, Bear Stearn's has received at least $300 million from its investment.

Including value of its unsold shares, the Company has made a more than 15x the $60 million it invested in the Company, or $900 million. Given the investment professionals' share of the profits, this comes out to $180 million for the eleven managing directors at the firm.

Like we said, "Fat Pockets"!

According to TheDeal.com:
Bear Stearns Merchant Banking, which acquired the New York-based chain in 2002 for $153 million and took it public in October 2004, said it would sell 9 million shares in an offering underwritten by Bear Stearns & Co., the merchant bank's parent, and by Wachovia Securities, J.P. Morgan Securities, Piper Jaffray & Co. and S.G. Cowen & Co.

Bear Stearns Merchant Banking itself would sell 8.07 million of the 38.5 million shares it now owns, and top managers and directors would sell 800,000 shares. In addition, New York & Co. plans to sell 130,000 newly issued shares.

Based on New York & Co.'s closing price Thursday on the New York Stock Exchange, $21.52, Bear Stearns Merchant Banking would collect about $174 million in cash.

That would bring Bear's total cash proceeds to date from common stock sales and from a preferred stock redemption to $311 million.

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