Men’s and Women’s fashion retailer Express, Inc. and private equity firm Sycamore Partners announced on Tuesday that Sycamore’s interest in acquiring Express has been terminated due to the unavailability of financing on commercially acceptable terms. The decision was made despite having worked toward a transaction in good faith over the past several months.
In a letter to Express’ board of directors in June, Sycamore, which already has a 9.9 percent stake in the clothier, expressed its interest in buying the company but said it would do its due diligence to determine an adequate valuation.
Sycamore Partners has agreed to be bound until June 15 of this year, “by certain restrictions relating to, among other things, the disclosure of certain information and its ability to contact or enter into an arrangement with third parties for the purpose of acquiring Express,” according to a statement.
Express currently operates over 600 retail and factory outlet stores in the United States, Canada, and Puerto Rico. The company’s merchandise is also available at franchise locations in the Middle East, Latin America and South Africa.
New York-based Sycamore Partners, specializes in consumer and retail investments with more than $3.5 billion in capital under management. Sycamore’s investment portfolio includes, to name a few, Aeropostale, Hot Topic, Jones New York, and Nine West Holdings.