Sycamore reportedly in talks to buy Chico 's FAS

Private equity firm Sycamore Partners is reportedly in talks to buy apparel retailer Chico's FAS Inc. According to sources close to the matter quoted by Reuters, the private equity firm would be trying to secure debt financing for a deal that could reach 3 billion dollars.

Same sources, who have chosen to remain anonymous given the private nature of these talks, Sycamore has an in-principle agreement to acquire the company subject to securing financing, one of the people said.

However, some banks seemed to be reluctant to meet Sycamore's demands for a lot of debt to increase returns on the deal, both the sources added.

On the wake of the news, Chico's stock gained 10 percent in extended trading on Tuesday after the ‘Wall Street Journal’ first reported the potential deal.