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.