Restoration Hardware (RH) said that its chairman and CEO, Gary Friedman, sold an aggregate of 500,000 shares of RH common stock from December 9 through December 11, 2019, consisting of an option to purchase 100,000 shares, and 400,000 shares of common stock that Friedman owned outright.
Friedman reported that the current sale of shares was made in order to fund a final payment obligation due under a marital dissolution agreement; the acquisition and improvement of real estate for a personal residence; and the repayment of outstanding balances under personal line of credit borrowings.
The current sale represented approximately 6.9% of Friedman’s aggregate ownership stake in RH. Following this sale, Friedman retains beneficial ownership of 6,730,158 shares, representing beneficial ownership of approximately 28.1% of RH’s common stock.
Friedman last sold shares of RH common stock in 2013. Since that time, he has purchased shares of common stock in open market purchase transactions on six different occasions from September 2014 to September 2018.
Friedman stated, “I have been a net buyer of RH shares for a significant period of time and have sold shares now solely to satisfy certain financial obligations. My shares continue to represent the largest ownership position in RH and the vast majority of my net worth, reflecting my continued commitment to RH and confidence in the company’s strategy and growth prospects.”
Friedman also informed the company that he does not expect to sell additional shares at this time.