Sycamore reportedly abandons plans to buy Chico’s FAS

Private equity firm Sycamore Partners has abandoned its attempt to buy apparel retailer Chico's FAS Inc (CHS.N) after failing to secure financing on acceptable terms, the ‘Wall Street Journal’ reported quoting a person familiar with the matter.

Sycamore was trying to raise debt financing for the deal estimated to reach 3 billion dollars, Reuters reported on February, 10.

Sycamore had an in-principle agreement to acquire Chico's, subject to securing financing. Some banks were reluctant to meet the private equity firm's demands for a lot of debt to increase returns on the deal, two people familiar with the matter had told Reuters.

On the wake of the news, Chico’s FAS Inc. fell as much as 6.1 percent in extended trading, pointed out Bloomberg.

It is worth to remember that Sycamore withdrew its bid to acquire Express,Inc after months of back and forth negotiations that ended with Sycamore failing to line up funding on “acceptable terms”.

The deal talks were terminated in late January after pursuing it for nearly seven months, reminds ‘NASDAQ’.