FORT MYERS, Fla., June 19, 2019 /PRNewswire/ -- Chico's FAS,
Inc. (NYSE: CHS) (the "Company") today confirmed that it has
received a revised unsolicited proposal from Sycamore Partners
("Sycamore") to acquire the Company for $3.00 per share in cash.
Consistent with its fiduciary duties and in consultation with
its independent financial and legal advisors, the Chico's FAS Board
of Directors (the "Board") will carefully review Sycamore's revised
proposal to determine the course of action that it believes is in
the best interests of Chico's FAS shareholders.
The Company noted that the Chico's FAS Board has already
reviewed and unanimously rejected a previous higher-priced proposal
from Sycamore submitted on May 10,
2019 to acquire the Company for $3.50 per share. The Board determined that the
previously submitted proposal substantially undervalued Chico's FAS
and was not in the best interests of Chico's FAS
shareholders.
Notably, numerous Chico's FAS shareholders have expressed to
management that they support the Board's previous decision to
reject Sycamore's proposal and share the view that Sycamore's
proposal is inadequate.
Shareholders also support the actions underway to improve
performance and value creation.
As detailed on the Company's first quarter 2019 earnings call,
the Chico's FAS Board has recently made significant changes to the
Company's leadership and reset priorities for growth and value
creation. Actions are now underway across all brands with a
focus on three distinct areas that will positively impact results.
These include driving stronger sales through improved product and
marketing; optimizing the customer journey by simplifying,
digitizing and extending the Company's unique and personalized
service; and transforming its sourcing and supply chain operations
to increase product speed to market and improve
quality.
Chico's FAS is also benefitting from leaders who have
implemented successful turnarounds at other major apparel
retailers, and the Board's search for a new CEO is ahead of
plan.
The Board is confident that the actions the Company is taking
are the right steps to position Chico's FAS to achieve its
objectives.
The Chico's FAS Board intends to respond to Sycamore's latest
unsolicited proposal in due course. Chico's FAS shareholders
do not need to take any action at this time.
Goldman Sachs & Co. LLC is serving as financial advisor to
Chico's FAS, and Paul, Weiss, Rifkind, Wharton & Garrison LLP
is serving as legal counsel.
ABOUT CHICO'S FAS, INC.
The Company, through its
brands – Chico's, White House Black Market, Soma and TellTale™ is a
leading omnichannel specialty retailer of women's private branded,
sophisticated, casual-to-dressy clothing, intimates and
complementary accessories.
As of May 4, 2019, the Company
operated 1,410 stores in the U.S. and Canada and sold merchandise through 84
international franchise locations in Mexico and one domestic franchise airport
store. The Company's merchandise is also available at
www.chicos.com, www.chicosofftherack.com, www.whbm.com,
www.soma.com and www.mytelltale.com as well as through
third party channels.
For more detailed information on the Company, please go to our
corporate website at www.chicosfas.com. The information on our
corporate website is not, and shall not be deemed to be, a part of
this press release or incorporated into our federal securities law
filings.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION
REFORM ACT OF 1995
This release contains statements that
constitute forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. The statements
relate to, among other things, expectations, estimates and
projections regarding the brand's new product initiatives and are
identified by use of the words "anticipate," "believe," "could,"
"estimate," "expect," "intend," "may," "plan," "outlook,"
"predict," "project," "should," "strategy," "target," "will,"
"would," "potential" and similar terms. Factors that could cause
actual results to differ include, but are not limited to: the
extent of the market demand and overall level of spending for
women's private branded clothing and related accessories; the
effectiveness of our brand awareness and marketing programs; the
ability to successfully execute our business strategies and to
achieve the expected results from them; and the risk that our
investments in merchandise or marketing initiatives may not deliver
the results we anticipate. Other risk factors for the Chico's FAS,
Inc.'s business are detailed from time to time in the Chico's FAS,
Inc.'s Quarterly Reports on Form 10-Q, Annual Report on Form 10-K
and other reports filed with the Securities and Exchange
Commission. These factors should be considered in evaluating
forward looking statements contained herein.
Contacts:
Julie
Lorigan
Vice President – Investor Relations,
Public Relations and Corporate Communications
Chico's FAS, Inc.
(239) 346-4199
Barrett Golden / Leigh
Parrish
Joele Frank, Wilkinson Brimmer
Katcher
(212) 355 4449
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SOURCE Chico's FAS, Inc.