Sycamore Partners offers to purchase Chico's for $3.50 per share
A Friday filing from Chico's Fas Inc. includes a bid from Sycamore Partners to acquire all outstanding shares of the clothing and accessories retailer for $3.50 per share. Sycamore Partners currently owns a 6.6% stake in Chico's, which has a market cap of $431.0 million. Chico's shares closed Thursday at $3.70 per share. "We believe that engaging with us so we can perform our due diligence has the benefit of creating alternatives for the company's stockholders," Sycamore said in its letter. "Given the rate and severity of the deterioration of the company's business, we believe that it is in the best interests of all stockholders for the board to create those options." Chico's shares have sunk more than 60% over the past year while the SPDR S&P Retail ETF has gained 4% and the S&P 500 index is up 5%. In January, Chico's announced that it was closing 250 stores and guided for a fourth-quarter sales decline. Sycamore said it can finance the entirety of the deal without third-party financing and complete the transaction and due diligence within 60 days. Chico's stock is up 3% in Friday trading.
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