(Filed Under Financial and General Interest News). Sycamore Partners has abandoned its attempt to buy Chico’s FAS, parent to Soma Intimates, according to the Wall Street Journal.
The proposed deal, which would have topped $3 billion, fell apart because Sycamore could not arrange financing on “acceptable terms” according to the publication. Sycamore already has investments in several retailers with significant intimate apparel offerings and Soma itself operates over 280 lingerie stores and is projecting “600 plus” lingerie stores in its future, according to Chico’s executives.
Sycamore was founded in 2011 and the same year acquired a 51 percent controlling interest in Mast Global Fashions, (now called MGF) the third-party apparel sourcing division of Victoria’s Secret parent L Brands. It is completing the purchase of the remainder of MGF this year. At the time of the initial investment it called MGF “one of the largest apparel sourcing, manufacturing, and supply chain companies in the world.” L has retained its “separate sourcing operation for their intimate apparel and personal care/beauty businesses.”
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