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Dive Brief:
With no other suitors coming forward, Chico’s FAS has been acquired by private equity firm Sycamore Partners, per an announcement Friday that the deal has closed.
In September, the companies said Sycamore would buy the apparel group — which includes Chico’s, White House Black Market and intimates brand Soma — for $1 billion unless a better offer materialized during a 30-day “go shop” period.
Also on Friday, Sycamore said that the Chico’s brands have joined its KnitWell Group, a holding company formed last year that also includes Ann Taylor, Loft and Talbots and provides services to plus-size specialty retailer Lane Bryant.
Dive Insight:
With Chico’s brands on board, KnitWell is now an enterprise with $6 billion in annual sales.
Combining the brands into one operation allows them to share best practices and innovations and provides opportunities for efficiencies, KnitWell CEO Lizanne Kindler said in a statement.
“Chico's, White House Black Market and Soma fit perfectly into the portfolio as established and inspiring brands that generate sustainable, high-quality results,” she also said. “We are thrilled to welcome these brands, their more than 14,000 associates and their customers to the KnitWell family."
Chico’s FAS CEO Molly Langenstein is staying on, and in a statement Friday called the acquisition an “important milestone” for the brands. When the Sycamore deal was first announced, B. Riley analysts called Langenstein “essential to Chico’s continued success.”
The move into Sycamore’s KnitWell unit stands in stark contrast to the fight Chico’s put up in 2019, when it successfully fended off the private equity firm’s repeated overtures. Langenstein took over as the conglomerate’s CEO the following year.
As of Oct. 28, 2023, Chico’s brands operate 1,256 stores in the U.S. and sell through 58 franchises in Mexico and two domestic airport franchises.
FAQs
FORT MYERS, Fla., Jan.
Is Talbots buying Chico's? ›
The Chico's brands will be merged under Sycamore's recently formed Knitwell Group that includes the Ann Taylor and Loft specialty fashion chains acquired in 2020 from Ascena and Talbots, which was acquired in 2012.
Is Chico's CEO out as brands join Sycamore holding company? ›
Chico's FAS CEO Molly Langenstein is leaving the company, according to a source close to KnitWell Group. New owner Sycamore Partners, a private equity firm, has moved Chico's brands into KnitWell, a holding company formed last year.
Who bought out Chico's Fas? ›
Sycamore Partners has announced that it has completed its acquisition of Chico's FAS, a Fort Myers-based retailer, for approximately $1 billion. This marks the beginning of an exciting new chapter for Chico's, White House Black Market, and Soma, the three iconic brands owned by Chico's FAS.
What has happened to Chico's? ›
2024: Sycamore Partners completes the acquisition of Chico's FAS.
What happened to Chico's stock? ›
With the completion of the transaction, Chico's FAS shares of common stock have ceased trading and are no longer listed on the New York Stock Exchange. Solomon Partners, L.P. acted as financial advisor to Chico's FAS, and Paul, Weiss, Rifkind, Wharton & Garrison LLP acted as legal advisor.
Who is the new owner of Chico's? ›
On January 5, 2024, Sycamore Partners completed the acquisition of the company for approximately 1 billion dollars.
How much did Sycamore pay for Chico's? ›
Sycamore Partners purchased Chico's FAS for $938.1 million in an all-cash deal. Chico's is ranked No. 108 in the Top 1000, Digital Commerce 360's database of the largest North American e-retailers. Sycamore Partners purchased Chico's FAS for $938.1 million in an all-cash deal.
Who is buying Chico's? ›
Chico's FAS has agreed to be acquired for $1 billion by private equity firm Sycamore Partners, the women's apparel retailer said Thursday. The price reflects $7.60 per share in cash, and carries no financing condition, according to a company press release.
Who is the parent company of Chico's? ›
Sycamore Partners was founded in 2011 by Stefan Kaluzny and Peter Morrow. Before Sycamore, Kaluzny was a managing partner at Golden Gate Capital and was employed since the firm's inception. Prior to joining Golden Gate, he co-founded Delray Farms, Inc.
Is Chico's in financial trouble? ›
Chicos FAS's likelihood of distress is above 80% at this time. It has very high risk of going through financial hardship in the upcoming years.
What are the sister companies of Chico's? ›
Our three unique lifestyle brands – Chico's, WHBM and Soma – serve the needs of fashion-savvy women, while our integrated, omnichannel approach provides a holistic retail experience to our customers through our stores, outlets and online presence.
Are Ann Taylor and Talbots the same company? ›
Ann Taylor and Loft were acquired by Sycamore Partners in 2020. Sycamore Partners is bringing its three big apparel brands together under one roof. The private equity firm has formed KnitWell Group ("KnitWell"), a holding company comprised of Ann Taylor, Loft and Talbots.
What is the target age for Chico's? ›
Chico's core customer is 45 years and older. But the number of women in the 45-64 year age group will decline 3% from 2015 to 2025, while those over 65 years (i.e. Baby Boomers) will be the fastest-growing segment of women, expected to rise 36% by 2025, according to the latest Census projections.
Why is it called Chico's? ›
Where did the name come from? Founders Helene and Marvin Gralnick named the company after their neighbor's beloved parrot, Chico.
Where are Chico's clothes made? ›
The garment is then flown to handpicked plants in Turkey or Guatemala that make Chico's clothes on a contract basis. The operation mirrors many giant American apparel retailers that get most of their goods from other countries where workers are paid a fraction of what their counterparts would make in the United States.
Who is Chico's competitor? ›
Chico's FAS's competitors and similar companies include Francesca's, Mirraw, Chic by Choice and Alexander Mcqueen. Chico's FAS, Inc. is an American women's clothing and accessories retailer.
Are Chico's and Talbots the same company? ›
Lizanne Kindler is the Executive Chair and Chief Executive Officer of KnitWell Group, a multi-brand retail operating company comprised of the iconic American apparel brands, Ann Taylor, Chico's, Haven Well Within, Lane Bryant, LOFT, Soma, Talbots and White House Black Market.
Who is the CEO of Chico's? ›
Molly Langenstein was named CEO of Fort Myers-based Chico's in June 2020 after a 30-year career at Macy's. Langenstein joined the Fort Myers company in 2019 as president of Chico's and White House Black Market before being elevated to CEO of Chico's FAS in April 2020.
The firm's investment portfolio currently includes Belk, Coldwater Creek, CommerceHub, EMP Merchandising, Hot Topic, MGF Sourcing, NBG Home, Nine West Holdings, Staples, Inc., Staples' United States Retail Business, Staples' Canadian Retail Business, Talbots, The Limited and Torrid.
Who is buying Chico's stores? ›
Sycamore to take apparel retailer Chico's FAS private for nearly $1 billion. Sept 28 (Reuters) - Chico's FAS (CHS. N) , opens new tab will be taken private by Sycamore Partners for $938.1 million in an all-cash deal, the apparel retailer said on Thursday, sending its shares surging to close 63% higher.
Does Sycamore Partners own Talbots? ›
Sycamore acquired Talbots for approximately $391 million in 2012. KnitWell's name reflects the company's core belief that each brand is distinctive, but when put together they are a powerhouse retail organization dedicated to meeting customers where they are in their journey, Sycamore said in a press release.
