Reuters: Private Equity: UPDATE 1-Talbots says Sycamore walks away from offer

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UPDATE 1-Talbots says Sycamore walks away from offer May 25th 2012, 13:04 Fri May 25, 2012 9:04am EDT * Says Sycamore not prepared to execute a deal now * Company exploring other strategic alternatives * Shares fall 23 percent premarket May 25 (Reuters) - Women's apparel retailer Talbots Inc said Sycamore Partners, with which it had been in exclusive talks for a buyout, was not prepared to execute a deal at this time. Shares of the company plunged 23 percent in premarket trading to $1.97. They closed at $2.56 on Thursday on the New York Stock Exchange. Talbots said it remains open to pursuing a transaction with Sycamore at $3.05 per share, if the private equity firm can provide certainty over closing the deal and financing commitments. The offer values the retailer at around $215 million. The company, which also reported first-quarter results, said it was exploring other strategic alternatives. Cash-strapped Talbots, once a popular destination for its classic fashion, has been consistently lagging competitors Ann Inc and Chico's FAS Inc and its sales have fallen for five years in a row. Talbots put itself up for sale and opened its books to Sycamore in January, shopping for a higher bid after rejecting the firm's initial offer. The company is also looking for a successor to outgoing Chief Executive Trudy Sullivan who unsuccessfully tried to reignite growth at the chain with new store formats and cost cuts. Link this Share this Digg this Email Reprints

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