(Reuters) – Private equity firm Sycamore Partners has abandoned its attempt to buy apparel retailer Chico’s FAS Inc (CHS.N: Quote, Profile, Research, Stock Buzz) 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, Reuters reported on Feb. 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.
Chico’s, based in Fort Myers, Florida, operates 1,547 stores in the United States and Canada, selling private-label women’s casual clothing and related accessories.
Sycamore and Chico’s were not available for comment outside normal working hours.