Two high-powered investors have resigned from the board of subprime lender Aames Financial Corp., signaling that their anticipated purchase of the company has been called off. Howard Gittis, a representative of financier Ronald Perelman, and thrift executive Gerald Ford, resigned from Aames' board on Sept. 24, according to a recent Securities and Exchange Commission filing.
In April, Mr. Ford and Mr. Perelman collectively purchased a 9.9% stake in Aames, at $13.7625 per share, and warrants to purchase another 9.9%. Aames stock has been falling steadily since the end of April, and closed Wednesday at $6.125. Mr. Perelman's and Mr. Ford's stake in Aames is now worth a little more than $17 million, versus more than $38 million when they made the purchase.