Report: Chico’s considers private equity sale

Ft. Myers, Fla. – Chico’s FAS Inc. may be considering a sale to one of several private equity suitors.



According to Bloomberg, Chico’s has been approached by Sycamore Partners and is also in talks with other private equity groups about a possible sale.



Chico’s is said to be working with investment bank Peter J. Solomon. Sycamore Partners attempted to purchase Chico’s in February 2015, but the deal fell apart due to financing issues. Activist investor group Blue Harbour, Chico’s biggest shareholder, has been pushing the retailer to sell itself since 2013.



In August, Chico’s announced it would sell its Boston Proper specialty women’s apparel business to an unspecified buyer for an undisclosed sum, and close all 20 Boston Proper stores. Earlier this year, the retailer launched a turnaround plan that includes closing some 120 stores through February 2017, cutting jobs and reducing spending, mostly due to impairment and restructuring charges related to Boston Proper. Net sales and same-store sales both slightly increased.