Dive Brief:
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Fort Myers, FL-based apparel retailer Chico’s, which operates Chico’s, Soma Intimates, White House Black Market, and Boston Proper stores, Thursday reported a Q4 loss of $31.8 million, down from a reported profit a year ago; the results beat Wall Street expectations.
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Private equity firm Sycamore Partners Management couldn’t line up the needed financing to buy the women’s apparel chain and dropped its buyout plans earlier this week, the Wall Street Journal reported.
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On Wednesday there were reports of layoffs and potential store closings, after news of the failed sale and in anticipation of Thursday’s earnings report.
Dive Insight:
Nerves seem to be a little on edge at Chico’s, but retail consultant Howard Davidowitz told the Fort Myers New-Press that without the scuttlebutt of a potential takeover, the retailer can concentrate on its strengths and any needed improvements to its merchandise and approach.
"I think this was a tremendous diversion for Chico's," Davidowitz says. "The first thing they have to do is decompress. And now they have to do what they should be doing and that is focusing on their own business — the right merchandise, the right time, the right place, and the right price."
