Chico’s rejects buyout offer from Sycamore Partners (chainstoreage.com)

The board of Chico’s FAS has unanimously rejected an unsolicited buyout proposal from Sycamore Partners.

The struggling women’s apparel retailer received an offer from Sycamore Partners on May 10 to acquire the retailer for $3.50 per share in cash, about $407.8 million. On Thursday, May 16, Chico’s said that, following a review, it had determined that Sycamore’s proposal substantially undervalues the company and is not in the best interests of its shareholders.

“Chico’s FAS benefits from a strong operating and financial foundation, including a portfolio of differentiated brands, loyal customers and robust omnichannel capabilities, stated David Walker, board chair. “Sycamore’s interest underscores the upside opportunities that these competitive advantages create, but the prices Sycamore has proposed are inadequate and fail to recognize the full value of the company and its future prospects.”

More detail at https://www.chainstoreage.com/finance-0/chicos-rejects-buyout-offer-from-sycamore-partners/

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