Sherwood Investments Overseas Ltd. has signed a confidentiality agreement with mall-based entertainment retailer Trans World Entertainment Corp regarding its $7 per share bid to acquire the chain, which operates some 950 stores under the F.Y.E., Suncoast, Wherehouse, and Second Spin banners.  The Orlando, Florida-based Sherwood controls 1.9 million shares (or about 6.31%) of Trans World stock, and is seeking to forestall a $5 per share bid from Trans World founder/CEO Robert Higgins and investor Bryant Riley, who are attempting to take the company private (see 'Trans World Buy Back?').

Sherwood's offer, which totals around $217 million, was submitted to a committee established by the Trans World board of directors late last month.  The offer came just days after Trans World reported a bigger-than-expected third quarter loss (see 'Trans World Losses Grow in Q3') as music sales continue to decline precipitously.

Higgins and Bryant control about 55% of the Trans World stock.  Trans World remains a key retailer of anime titles.