Talbots Gets Better Buyout Offer From Sycamore
BOSTON — Struggling Hingham clothing retailer Talbots Inc. has received a sweetened buyout offer from its largest shareholder, Sycamore Partners. The offer from the New York private equity firm values the Talbots buyout at about $211 million.
As WBUR’s Curt Nickisch reported just now for our Newscast unit:
Talbots already said no once to Sycamore. In December, the women’s clothing seller turned down an offer of $3 per share, saying it was too low. Now Sycamore is offering an additional nickel per share. The second offer amounts to about a 9 percent premium over where Talbots’ shares ended trading last week.
Talbots has been struggling for several years. It has posted annual losses in four of the past four years.
As the AP reports:
To reverse its fortunes, Talbots laid out plan to cut jobs, close stores, trim employees’ hours, suspend national advertising and TV campaigns and reduce inventory.
It closed 47 locations under its plan during the fourth quarter. It said last month that it plans to close about 110 locations in total, which includes the consolidation of 15 to 20 locations through fiscal 2013.
The Talbots board says it is reviewing the buyout offer, according to WBUR’s Curt.