Talbots Rejects Sycamore’s Buyout Offer

Women’s clothing chain Talbots Inc. has rejected a $212 million buyout offer from private equity firm Sycamore Partners, Reuters reported Tuesday. Earlier this month, Sycamore, which owns 9.9% of Talbots, offered to buy Talbots for $3 a share when the company’s stock was trading at $1.56. Investors in the company quickly criticized the offer as too low.

(Reuters) – Women’s apparel chain Talbots Inc , which is looking for a new leader, rejected a $212 million buyout proposal from private equity firm Sycamore Partners, and said it would instead look at strategic alternatives.

Earlier this month, Sycamore, which owns 9.9 percent of Talbots, offered to buy Talbots for $3 a share when the company’s stock was trading at $1.56.

Talbots said it concluded that the Sycamore proposal was “inadequate and substantially undervalues the company.”

Talbots has been looking for a new chief executive to replace Trudy Sullivan, who unsuccessfully tried to revive the company with new store formats, cost cuts and by chasing a younger clientele.