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.
