Less than one month after it failed to secure financing to purchase Express Inc., private equity firm Sycamore Partners is in talks to acquire Chico’s FAS. The Wall Street Journal broke news of the potential deal on Tuesday.
Chico’s, which includes its own women’s apparel brand, White House Black Market, lingerie label Soma, and online and catalog retailer Boston Proper, operates more than 1,550 stores around the U.S. The company trades on the Wall Street Stock Exchange with a market value of more than $2.65 billion, meaning that it could sell for upwards of $3 billion. According to several media outlets, New York-based Sycamore is trying to secure debt financing.
Other brands under Sycamore’s control include Aeropostale, Talbots and The Jones Group; purchased last year for $2.2 billion including debt and comprising Nine West, Anne Klein and Easy Spirit. In January, the 4-year-old firm agreed to sell upscale women’s footwear label Stuart Weitzman to handbag maker Coach in a deal valued at up to $574 million.
Sycamore declined to comment on the rumor. Chico’s could not be reached.