Total revenues were $157.3 million compared with $165.8 million in the prior year period. Adjusted for the sale of Fannie May Confection Brands (which closed on May 30, 2017), total revenues increased 1.81 percent. EPS loss for the quarter was $0.20 per share, compared with a loss of $0.24 per share in the prior year period. Adjusted for the sale of Fannie May, the prior year period EPS loss was $0.201 per share. Adjusted EBITDA1 was a loss of $10.1 million, compared with an Adjusted EBITDA1 loss of $13.1 million in the prior year period. Reflecting the sale of Fannie May, Adjusted EBITDA1 loss in the prior year period was $9.5 million. Click Read More below for additional information.
A private equity firm that currently owns a 6.6% stake in Chico’s FAS wants to purchase the rest of the chain.
The embattled women’s apparel and intimates retailer confirmed it has received an unsolicited proposal from Sycamore Partners to acquire the retailer for $3.50 per share in cash, about $407.8 million. Chico’s said it will review the proposal “to determine the course of action that it believes is in the best interests of Chico’s FAS shareholders.” The company also revealed that it had received, reviewed and rejected a previous unsolicited offer from Sycamore to acquire Chico’s for $4.30 per share in cash. Chico’s did not say when the previous offer was made.
“Following this review, the board unanimously determined that the prior proposal substantially undervalued Chico’s FAS and was not in the best interests of Chico’s FAS shareholders,” the retailer stated.