Chico's board unanimously rejects proposal from Sycamore Partners
Chico's FAS announced that its Board of Directors has unanimously rejected the unsolicited proposal received from Sycamore Partners on June 19, to acquire all of the outstanding shares of Chico's FAS for $3.00 per share in cash. After reviewing the proposal in consultation with its independent financial and legal advisors, the Chico's FAS Board determined that Sycamore's proposal substantially undervalues Chico's FAS and is not in the best interests of Chico's FAS shareholders. The Board's determination follows its review and unanimous rejection of Sycamore's previous proposal on May 10 to acquire Chico's FAS for $3.50 per share in cash. David Walker, Chair of the Board, said, "Our focus is on serving the best interests of all Chico's FAS shareholders, and we are pleased with the strong support we have received from numerous Chico's FAS shareholders for the actions underway to improve the Company's performance. Notably, shareholders have also expressed their belief that Sycamore's proposal significantly undervalues the company. We remain committed to enhancing value for all Chico's FAS shareholders. We are making progress on our new operating priorities and the search for a new CEO, and will remain focused on continuing to execute in these areas."