Williams-Sonoma CEO sells seventh of stake in Co
Oct 16 (Reuters) - The chief executive of Williams-Sonoma Inc (WSM.N) sold about 14 percent of his stake in the retailer to cover a margin call, according to a regulatory filing on Wednesday.
"The shares had been previously pledged to collateralize a loan and were sold as the result of a margin call at the discretion of the lending institution," the company said in a filing with the Securities and Exchange Commission.
Chief Executive Howard Lester sold about 1 million shares in all on Monday and Tuesday, according to the filing. Following the sale on Tuesday, Lester owned about 6.2 million shares of the company which operates the Williams-Sonoma cookware stores and Pottery Barn furnishing outlets.
Lester now effectively owns about 6 percent of the company's shares. The San Francisco-based company had about 105.6 million shares outstanding as of Aug. 31.
On Monday, Lester sold his shares for an average of $12.63 and on Tuesday for an average of $13.17, the filing said.
The upscale home furnishings chain's stock has lost nearly half its value in the last six months as its profits have steadily shrunk amidst a soft U.S. economy and weak housing market.
Its shares closed down 7.7 percent on Wednesday at $12.10. (Reporting by Shradhha Sharma in Bangalore; Editing by David Cowell)
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