===Chico's FAS (CHS) acquired by Sycamore Partner for $7.60/share

Chico's FAS announces the completion of its acquisition by Sycamore Partner for $7.60/share in an all-cash transaction valued at approximately $1 billion

 

Ascena Retail Group (ASNA) to shutter at least 1,200 stores

• Update Dec 23, 2020: Ascena announced that Sycamore Partners has completed its acquisition of Ann Taylor, LOFT, Lou & Grey and Lane Bryant brands. Ascena is now a privately held company owned by Sycamore Partners and no longer a publicly traded company.

  

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(Bloomberg) -- Ascena Retail Group Inc., the owner of mall brands that occupy almost 3,000 stores in the U.S., is preparing to file for bankruptcy and shutter at least 1,200 of those locations, according to people with knowledge of the plan.

The company, which owns brands such as Ann Taylor and Lane Bryant, could enter Chapter 11 as soon as this week with a creditor agreement in place that eliminates around $700 million of its $1.1 billion debt load. Lenders including Eaton Vance Corp. would assume control of the company, said the people, who asked not to be identified discussing a private matter.

=L Brands (LB) to sell Victoria's Secret to Sycamore Partners for $1.1B

(Reuters) - L Brands Inc (LB) said on Thursday it will sell a controlling stake in its Victoria's Secret unit to investment firm Sycamore Partners, valuing the lingerie brand at $1.1 billion, as it focuses on its core Bath & Body Works brand.

L Brands' long-time Chief Executive Officer Leslie Wexner would step down from his role following the close of the transaction and become chairman emeritus.

L Brands, which has a market valuation of about $7-billion, has seen sales dwindle at its Victoria's Secret business as it fends off increased competition from online retailers and has also drawn criticism for its lingerie not being inclusive of all body types.

The brand accounted for nearly half of the company's $13.24 billion revenue in 2019, but has seen sales decline for at least four quarters.

Columbus, Ohio-based L Brands said Sycamore Partners would own 55% of Victoria's Secret, while L Brands would retain a 45% stake. The company's Bath & Body Works would now run as a standalone company.

GameStop (GME) is looking for another CEO again and reviewing strategic alternatives

Videogame retailer GameStop Corp. is working to restructure its business as it searches for its fifth chief executive in a little over a year.

Private equity firms interested in buying GameStop include Sycamore Partners and Apollo Global Management, people familiar with the matter told the Wall St. Journal.

The video game and electronics company has struggled as competition from Amazon and digital gaming have eaten into its sales. Revenues have dropped for four of the last five years, and investors aren't happy. Its stock, which has a $1.5 billion market value, declined 30 percent last year.

The company has been trying to restructure its business and branch out beyond selling new and used video games. But those ventures haven't always worked out. In November, it sold its Spring Mobile business for $700 million to Prime Communications to generate cash.

GameStop and Sycamore Partners declined to comment. Apollo wasn't immediately available to respond to a request for comment.

-=Bon-Ton Stores (BONT) : talks with Sycamore Partners

Sycamore Partners, a private equity firm with a reputation for scooping up troubled retail operations, has held talks with distressed department-store chain Bon-Ton Stores Inc. about acquiring some of its assets, people familiar with the matter said.

=Staples (SPLS) to be acquired by Sycamore Partners for $10.25 per share

Staples confirms definitive agreement to be acquired by Sycamore Partners for $10.25 per share in cash, or approximately $6.9 bln

  

Framingham, MA-based Staples Inc. said on Wednesday that it entered into a deal to be acquired by New York-based private equity firm Sycamore Partners in a deal valued at $6.9 billion..

The office supply retailer said investment funds managed by Sycamore Partners will acquire the company in the transaction.

Company shares have lost about 22 percent of their value over the past five years as the retailer has been met with increasing online competition and a challenging environment for brick-and-mortar stores

Under the terms of the merger agreement, all Staples’ stockholders will receive $10.25 per share in cash for each share of common stock they own, which represents a premium of approximately 20 percent to the 10-day volume weighted average stock price for Staples shares for the period ended April 3, 2017.

Staples said that its board of directors unanimously approved the merger agreement and recommends that all Staples stockholders vote in favor of the transaction.


The deal is subject to regulatory and stockholder approvals and is expected to close no later than December 2017, the company said. The closing is not subject to a financing condition.

The company recently reported that total sales for the first quarter of 2017 were $4.1 billion, a decrease of 5 percent compared with the same time period a year earlier. The company closed 18 stores during the first quarter of 2017 and ended the quarter with 1,237 stores in the United States and 304 stores in Canada.


Staples has been retooling its business since its failed takeover of rival Office Depot last year. Reuters reported in May that Sycamore was one of two firms actively exploring an acquisition of the retailer.

Recent Sycamore Partners acquisitions:

• The Limited - Won auction in 2017 for $26.8 million.
• talbots - Acquired in 2012 for $391 million
• Stuart Weitzman - Acquired in 2014 for $2.2 billion. Sold to Coach, Inc. in 2015 for $574 million.
• Nine West - Acquired in 2014 for $2.2 billion.
• Jones New York - Acquired in 2014 for $2.2 billion. Sold to Authentic Brands Group in 2015.
• Hot Topic - Acquired in 2013 for $600 million.
• Coldwater Creek - Acquired in 2014.

=Staples (SPLS) to be acquired by Sycamore Partners?

• Private equity firm Sycamore Partners is on the brink of acquiring Staples (SPLS), the world's largest office supply company, in a deal that could top $6 billion, according to Reuters.
• In May, Cerberus Capital Management emerged as the front runner to secure the retailer.

  

Private equity firm Sycamore Partners is in advanced talks to acquire Staples Inc (SPLS) following an auction for the U.S. office supplies retailer, people familiar with the matter said on Wednesday, in a deal that could top $6 billion.

The acquisition would come a year after a U.S. federal judge thwarted a merger between Staples and peer Office Depot Inc (ODP) on antitrust grounds.

It would represent a bet by Sycamore that Staples could more quickly shift its business model from serving consumers to catering to companies if it were to go private.

Sycamore is in the process of finalizing a debt financing package for its bid for Staples after it prevailed over another private equity firm, Cerberus Capital Management, three sources said.

An agreement could be announced as early as next week, though negotiations between Sycamore and Staples are continuing and there is still a possibility that deal discussions could fall apart, the sources added.

Staples has 1,255 stores in the United States and 304 in Canada. It has the largest market share of office supply stores in the United States at 48 percent, and its share has increased since 2011, according to Euromonitor.

A number of private equity-backed retailers, from Sports Authority Inc to Payless ShoeSource Inc, have filed for bankruptcy in the last two years.

Sycamore, however, specializes in retail investments and has been more bullish on the sector. Its previous investments include regional department store operator Belk Inc, discount general merchandise retailer Dollar Express and mall and web-based specialty retailer Hot Topic.